US Products Outlook- Prices down as storm fears fizzle

TORONTO, Nov 9 (Reuters) - Trade is expected to stay thin and prices soft as Hurricane Ida fizzled into a tropical storm heading into the eastern Gulf, dashing trader hopes on both sides of the Atlantic that refinery closures would boost prices, traders said on Monday. [ID:nN09263651]

Distillates stocks are more than ample and unseasonably warm weather in the Northeast -- the largest consumer of heating oil -- continues to keep be demand down in the doldrums.

The gasoline arbitrage from Europe to the New York Harbor was closed, with shippers seen losing more money this week than last, putting the arb more firmly into loss-making territory.

Restarts of two key gasoline suppliers to the region will add to supply and weigh on prices. Hovensa said Friday it was restarting the 150,000 barrel per day FCCU at its St. Croix, Virgin Islands refinery after 12 days of unplanned work. [ID:nN06182025]

Traders also said that Irving Oil had finished upgrading its 300,000 bpd Saint John refinery in New Brunswick, Canada, that began in September and was offering barrels for sale by November 20. [ID:nN06236718]

In the Midwest, Chicago gasoline prices were similarly afflicted as suppliers outnumbered buyers.

Since last Friday, prompt cycle 2 unleaded gasoline fell about 4 cents -- from 10.00 cents under the RBOB futures benchmark to 14.00 cents under.

"Lack of quality buying and aggressive selling by Exxon," said one Midwestern trader about the price slide in the cul-de-sac market.

Dismal refinery margins continue to plague refiners as product prices fell faster than crude.