Japan oil refiners may see recovery in product margins

* Margins hit six-month low in July * Return to profit after heavy losses TOKYO, Aug 4 (Reuters) - Oil refining margins at Japanese refiners are likely to rise from a six-month low in July, as the decline in oil prices is expected to slow amid a seasonal recovery in demand for products, industry sources and executives said. The nearly $10 dive in global oil prices last month sent spot product prices sharply lower while costs for refiners were little changed, squeezing margins. But t