Europe Products-Prices slip; diesel firmer on shut arb

LONDON, Nov 27 (Reuters) - European oil product prices
slipped on Friday, dragged down by the dive in crude oil prices
amid the global market sell offs on that Dubai could default on
its debt. [ID:nGEE5A02FN]

Traders said there had not been any direct impact from the
debt trouble with regard to the physical oil market.

Physical diesel firmed by active bid in the region as the
arbitrage imports remained limited.

"The market is currently well bid on diesel due to low
refinery runs and the arbitrage being closed or almost closed,"
a broker said.

Diesel's discounts to gasoline was now around $65 a tonne,
compared with about $138 in June.

Naphtha was supported as demand from petrochemical firms in
Asia attracted product from the European market.

Traders have also said spot demand from European
petrochemical makers remain active as they have been switching
from more expensive butane.

GASOLINE AND NAPHTHA <EURO/DIFF/MOGAS>

* Barges of 10ppm unleaded gasoline fell by $20 a tonne in
early trade towards $675 a tonne.

* Prices were at $673-$676 a tonne fob ARA from around
$693-$698 at the close on Thursday.

* Brent crude prices LCOc1 were down more than 2 percent
at $75.38 a barrel. U.S. crude CLc1 was down 5 percent at
$74.07 a barrel

* The Eurograde's crack to dated Brent BFO- slipped to $6
a barrel from $6.30 on Thursday.

* Brent crude futures were trading $1.13 down at $75.89 a
barrel by 1308 GMT. LCOc1

* U.S. RBOB gasoline RBc1 futures have fallen by more than
8 cents in the last 24 hours to currently sit just above $1.90 a
gallon. Its crack to U.S. crude futures was $7.14 a barrel.
RB-CL1=R

* Naphtha was seen around $668 a tonne. The spread to
gasoline in Europe has fallen to just $7 a tonne as demand from
petrochemical firms in Asia attracts product from Europe.

MIDDLE DISTILLATES <EURO/DIFF/GO>

* Physical dealing was thin in early trade. Brokers said
differentials would be supported for both diesel and gas oil.

* Differentials on barges have firmed since offloading
operations at Rotterdam port were disrupted by bad weather
earlier this week, they said.

* Barges of gas oil with 0.1 percent sulphur traded at
around $4 discounts a tonne ARA fob to December ICE gas oil
futures late on Thursday, having traded at deep discounts of
about $12/$13 earlier in November amid the mild weather.

* Diesel barges traded at $11 premiums a tonne to the
benchmark late on Thursday, putting outright prices around
$608/$611 a tonne fob.

* The limited arbitrage from the United States have provided
further support to diesel cargoes, brokers said. In Northwest
Europe, differentials on 10ppm diesel were about $20 premiums a
tonne to the benchmark a tonne cif late on Thursday.

* Late on Thursday, active bids came from oil companies and
independent traders in northwest and the Mediterranean.

* The rises in physical differentials have also been a
response to a sharp fall to benchmark December ICE gas oil
futures LGOc1.

* By 1239 GMT, gas oil futures were trading at $596.50 a
tonne, having hit $580.00 earlier, the lowest since Oct. 12.

* At the end of October, the price was $624.75.

* The contango to January was around $11.50 a tonne,
unchanged from Thursday's close. LGO-1=R

* The prompt crack was around $6.07 a barrel. LGO-LCO1=R

* The water levels of River Rhine have risen and shipping
can return to normal, after having being forced to sail
partly-loaded. [ID:nGEE5AP0SB]

* In theory, this could support the barge market, but
oversupply of gas oil may offset it for the specific product.

FUEL OIL <EURO/DIFF/FO>

* High sulphur fuel oil (HSFO) barges with 3.5 percent
sulphur were discussed at $449-$454 a tonne fob Rotterdam,
compared with Wednesday's close at $446-$449.

* HSFO's crack to dated Brent narrowed to minus $4.65 a
barrel from minus $5.50 on Thursday.

Traders attributed the improvement in the crack to a sharp
fall in crude oil prices and low refinery runs in Europe.
(Reporting by David Sheppard and Ikuko Kurahone; editing by
James Jukwey)
((ikuko.kurahone@thomsonreuters.com; +44(0)20 7542 8145;
Reuters Messaging: ikuko.kao.reuters.com@reuters.net))

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