Europe Distillates/Fuel Oil-Diesel diffs firm on shut arb

LONDON, Nov 26 (Reuters) - Premiums on physical middle
distillates firmed on Thursday, led by diesel, as spot arbitrage
opportunities from Asia and the United States were very limited.

"We think it is closed from Asia and very borderline from
the United States," one broker said.

Diesel cargoes gained a litle more support, with underlying
transport demand and also the arbitrage middle distillate import
from the United States tends to be diesel when it happens.

Heavy inventories on land and at sea and warm weather still
pressured gas oil barges and ICE gas oil futures.

ICE GAS OIL

* December gas oil futures LGOc1 were up $1.50 at $609.50
a tonne by 1857 GMT.

* The contango to January was around $11.50 a tonne.

* The prompt contango steepened, closing at $11/$13 since
Nov. 11 except for expiry. It was $7.50 at the end of October.
LGO-1=R

* The prompt crack was around $6.31 a barrel. It has fallen
from $8 at the close of Nov. 17. LGO-LCO1=R

* The crack fared weaker than that of NYMEX heating oil
futures at around $7.88 a barrel.

GAS OIL

* ConocoPhillips offered a cargo at January plus $2 a tonne
cif NWE.

* In the Mediterranean, the Spanish winter spec was
discussed at December gas oil futures plus $4.50 and plus $5.50
a tonne cif. Bids were active from traders.

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

* The spreads were $3/$4 for December and minus $2/$3 for
January.

DIESEL

* Differentials on diesel cargoes were supported from
relatively active bids from oil companies in Northwest Europe
and the Mediterranean.

* ConocoPhillips bought the German winter spec at December
gas oil plus $21 a tonne cif NWE. The company also bid the
French winter spec at December plus $22.

* In the Mediterranean, Eni bid at December plus $19 a tonne
cif.

JET FUEL

* Premiums were steady, with KLM selling a barge to BP at
December plus $54 a tonne fob ARA.

* BP sold 57,000 tonnes to Vitol at December plus $59 and
the spot quote was minus $4 a tonne cif NWE.

* Swaps were little changed across the curve, with December
and January flat at $56/$57 a tonne cif.

FUEL OIL <EURO/DIFF/FO>

* High sulphur fuel oil (HSFO) barges with 3.5 percent
sulphur traded at $446.75-$449 a tonne fob ARA, little changed
from $446.50-$449 at Wednesday's close.

* But HSFO rose less than crude oil and its crack to dated
Brent was around minus $5.45 a barrel.

ARA STOCKS [ARA/]

* Refinery run cuts drew gas oil from the ARA independent
tanks down to a four-month low inventory level over the past
week, Dutch analyst Pieter Kulsen said on Thursday.

* Gas oil shipments from ARA tanks went to Wilhelmshaven in
Germany, where a local refinery run by ConocoPhillips has been
shut for most of the fourth quarter.

* Fuel oil inventories rose due to imports from from Brazil,
Lithuania, Russia and the UK, routes, which have recently become
regular.
(Reporting by Ikuko Kurahone; editing by James Jukwey)
((ikuko.kurahone@thomsonreuters.com; +44(0)20 7542 8145;
Reuters Messaging: ikuko.kao.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>