U.S. Cash Products-Gulf gasoline stronger on demand, talk of exports

* Gulf gasoline stronger on demand expectations, talk of exports

* NY Harbor mostly steady, RBOB strengthens slightly

* Midwest ULSD strengthens, gasoline little changed

NEW YORK, July 7 (Reuters) - U.S. Gulf Coast gasoline differentials against

futures benchmarks strengthened on Tuesday on healthy domestic and export

demand, brokers said.

"I think the big mover is talk of gasoline cargos heading out of the U.S.

Gulf Coast to South America and Mexico," said a Texas-based broker.

Gulf Coast A2 CBOB, or conventional regular gasoline blendstock formulated

for blending with 10 percent ethanol, traded 2 cents stronger at a 9.00-cent

discount to August RBOB futures for cycle-39 barrels on the Colonial

pipeline.

Conventional M2 gasoline traded 1.25 cent stronger at 1.75 cents above

August RBOB. It finished last week at 2.50 cents under.

News that Valero was struggling to restart a gasoline-making unit at

its Port Arthur, Texas, refinery and that Royal Dutch Shell (Xetra: R6C1.DE - news) shut its

Bengal refined products pipeline following a small leak in North Baton Rouge,

Louisiana, also were supportive to gasoline.

Jet fuel, 54 grade, scheduling for cycle 38 on the Colonial weakened 1.25

cents, with offers seen at 15.00 cents below August ultra-low sulfur diesel

(ULSD) futures. Cycle-39 barrels had offers at 14.50 cents under.

In the Midwest, Group Three ULSD gained 1.50 cents to 4.00 cents below

August ULSD, while gasoline gained 0.50 cent to 5.00 cents below August RBOB.

Chicago CBOB gasoline was at even to August RBOB, steady to where it was

pegged late on Monday. ULSD gained a penny to 1.00 cent below August ULSD.

It was the second day for Chicago trading for cycle-2 July supply.

Midwest gasoline differentials were little changed even with news that the

joint venture, BP Plc and Huskey Energy Inc refinery in Toledo,

Ohio, has shut the fluid catalytic cracking unit for five days for repairs.

Ethanol Renewable Identification Number (RIN) credits for 2015 traded from

45 to 45.75 cents each, strengthening during the day and stronger than Monday's

range of 44.25 to 45.25 cents, brokers said.

No quotes were reported for 2014 RINs, though prices were pegged near even

with RINs for the current year.

Biodiesel RINs for 2015 traded at 82 cents, up from Monday's 81 cents.

Credits for 2014 were seen at a 3-cent discount to 2015 credits, in line with

the prior session.

Latest day

Timing NYMEX Bid Offer Change

Contract

U.S. GULF COAST * Scheduling

A2 CBOB gasoline Cycle 39 RBOB -9.25 -9.00 2.00

M2 conventional gasoline Cycle 39 RBOB 1.50 2.00 1.25

62-grade ULSD Cycle 38 HO -7.00 -6.50 -0.75

54-grade jet fuel * Cycle 38 HO -15.50 -15.00 -1.25

Heating oil Cycle 38 HO -23.75 -23.25 1.50

NEW YORK HARBOR

M4 conventional gasoline Prompt RBOB -5.25 -4.75 0.00

F4 RBOB Prompt RBOB 3.00 3.50 1.00

ULSD Prompt HO -1.50 -1.00 0.00

Heating oil Prompt HO -13.50 -13.00 -0.25

Jet fuel Prompt HO -8.25 -7.75 0.25

MIDWEST

Chicago CBOB gasoline Cycle 2 RBOB -0.25 0.25 0.00

Chicago ULSD Cycle 2 HO -1.25 -0.75 1.00

Group Three gasoline RBOB -5.25 -4.75 0.50

Group Three ULSD HO -4.25 -3.75 1.50

(Reporting by Robert Gibbons and Chris Prentice in New York; Editing by Richard

Chang)