Europe Distillates/Fuel Oil-differentials firm; fuel oil rises

LONDON, Nov 25 (Reuters) - Gas oil differentials in Europe
held near two-week highs on Wednesday, supported by stormy
weather near the key oil port in Rotterdam, which has delayed
some tankers from offloading products this week.

But unseasonally mild weather in inland markets has
continued to depress demand for heating oil, keeping distillates
under pressure relative to crude and other products.
[ID:nGEE5AO1UX]

ICE GAS OIL

* December gas oil futures LGOc1 were $9.75 up, or 1.6
percent, at $611.50 a tonne by 1722 GMT.

* The contango to January was around $12 a tonne, up 50
cents since Tuesday. At the end of last week, it closed at
$12.25, the widest contango since August for a market close.
LGO-1=R NEWOILOIL

* The prompt crack was around $6.05 a barrel, down 21 cents.
LGO-LCO1=R

GAS OIL

* Barges of gas oil held between minus $6/$7 a tonne fob ARA
to December ICE gas oil futures. Prices were near two-week
highs, with stormy weather delaying shipping in the Rotterdam
region this week.

* Differentials were bid in the double digits on Monday.

* Hetco was seen selling to Mabanaft for the second day
running.

* East/West spreads remained positive for December,
suggesting no product will be coming from Asia to Europe on a
spot basis.

* East/West spreads for January were around minus $3.50 a
tonne.

WEATHER

* Weather in northwest Europe has remained mild for the time
of year, dampening demand for heating oil.

DIESEL

* Diesel premiums edged up to around $22-$24 a tonne from
near $20 a tonne cif NWE in the previous session.

* Barges traded at premiums of between $7 and $9 a tonne fob
ARA to the benchmark.

* Around 10,000 tonnes changed hands. Vitol was a seller
while Chevron bought for the second day running.

* The arbitrage outlook between Europe and the United States
for gas oil and diesel remained limited to term contract flows.

JET FUEL

* Barges moved higher and one changed hands at a premium of
$53/$55 a tonne fob ARA to the gas oil benchmark compared with
$50 on Tuesday.

* BP sold a cargo to Morgan Stanley at a premium of $58 a
tonne CIF Antwerp.

* Jet swaps were at $56.25/$57 for December, with premiums
in January seen at $56/$57.

* Swaps for Q1 2010 were seen at premiums of $58/59 a tonne
over gas oil bencmarks.

FUEL OIL <EURO/DIFF/FO>

* High sulphur fuel oil (HSFO) barges with 3.5 percent
sulphur traded at $446.50-$449 a tonne fob ARA, up from
$438-$442 in the previous session.

* But HSFO rose less than crude oil and its crack to dated
Brent fell by more than $1 to minus $7.70 a barrel from minus
$6.57 on Tuesday.

* Fuel oil barges with 1 percent sulphur traded at $471-$73
a tonne. The spread to dated Brent was firm at minus $2.70 a
barrel.

* Fuel oil barge with 1.5 percent sulphur traded at $463 a
tonne.
(Reporting by David Sheppard; editing by Anthony Barker)
((d.sheppard@thomsonreuters.com; +44(0)20 7542 4259; Reuters
Messaging: david.sheppard.reuters.com@reuters.net))

For latest physical prices double click on:
<EURO/DIFF/GO>, <EURO/DIFF/MOGAS> and <EURO/DIFF/FO>.
For energy speed guide page click on ENERGY.
For ARA oilstock data click on <ARA/OILSTOCKS>
For European oilstock data click on <O/EUROIL1>
For swaps prices double click on:
gasoline <0#PU-ARA-S> naphtha <0#NAF-NWE-S>
HS fuel oil <0#HFO-ARA-S> LS fuel oil <0#LFO-NWE-S>