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UPDATE 2-U.S. cash crude market at Cushing weakens after pipeline outage -traders

Devika Krishna Kumar

-traders@ (Adds Phillips 66 statement, Diamond pipeline outage)

NEW YORK, May 28 (Reuters) - The U.S. West Texas Intermediate crude cash roll for June/July weakened on Tuesday after an outage on the Ozark crude pipeline, which runs from Cushing, Oklahoma, to Wood River, Illinois, traders said.

The cash roll period runs for about three days after the expiry of the front-month futures contract, during which traders rebalance positions. Roll trade is closely tied to supply and demand at Cushing, the delivery point for U.S. crude futures.

The Ozark pipeline, which has a capacity of about 360,000 barrels per day, was shut, market intelligence firm Genscape said in a notice on Tuesday.

Representatives of MPLX LP, which operates the line, did not immediately respond to a request for comment.

The WTI cash roll was last bid at about minus 40 cents per barrel, traders said. The June/July cash roll traded at minus 20 cents per barrel on Friday ahead of the long holiday weekend.

Flooded areas of Arkansas and Oklahoma were bracing for more rain that will feed the already swollen Arkansas River, forecasters said on Tuesday. Up to 19 inches (48 cm) of rain have fallen so far in parts of Oklahoma over the month of May, the National Weather Service said, with more on the way.

Tallgrass Energy LP on Friday said it was providing a notice of temporary embargo of deliveries for its Tallgrass Iron Horse Pipeline due to extensive flooding on the Cimarron River in Oklahoma. That came a day after the pipeline owner placed a temporary embargo of deliveries for its Pony Express Pipeline.

It was not immediately clear whether flooding had caused the outage on Ozark. The pipeline flows northeast from Cushing to the Phillips 66 Wood River refinery in Roxana, Illinois, according to Genscape.

A Phillips 66 spokeswoman said there was no planned maintenance work currently under way at the Wood River refinery, but declined to comment on the Ozark outage.

The 200,000-bpd Diamond pipeline, which runs from Cushing to Valero Energy Corp's Memphis, Tennessee, refinery was also shut, according Genscape on Tuesday.

Flows on that line, however, were already limited due to planned maintenance work at the gasoline-producing unit at the Memphis refinery, traders said.

Diamond pipeline is a joint venture between Plains All American Pipeline LP and Valero. Both companies did not respond to requests for comment. (Reporting by Devika Krishna Kumar in New York; Additional reporting by Collin Eaton and Erwin Seba in Houston Editing by Tom Brown and Leslie Adler)