Europe Fuel Oil-Prompt crack spread widens

LONDON, July 10 (Reuters) - Fuel oil prices outpaced losses
on the crude market on Friday and the crack spread widened
slightly from a five-month low hit the previous day.

Even though the crack remains negative, fuel oil has
performed strongly this week relative to other product markets
where cracks have weakened.

Arbitrage bookings to Asia have supported prices this week,
traders said.

PRICES

* Benchmark high sulphur fuel oil (HSFO) barges with 3.5
percent sulphur fell to trade in a range between $342 and $345 a
tonne fob ARA, down about $10 from Thursday's close.

* Liquidity has been unusally high in recent sessions and
50,000 tonnes changed hands on Friday, brokers said.

* The crack spread weakened to minus $4.38 a barrel from
$3.81 at the end of the previous session.

* The crack was still within $1 of the strongest level hit
this year of minus $3.69 a barrel seen in February.

* It has narrowed by more than $2 from last Friday's closing
level of minus $6.62.

SWAPS

* The HSFO curve remained in backwardation with September
trading at a $1.50 discount fob ARA to the new front month
August.

* The premium of low sulphur cargoes to HSFO barges known as
the high-low spread traded at $6.50 for August.

* It was as wide as $26 on the front quarter with the barge
market in backwardation and cargoes in contango.

(Reporting by Emma Farge; editing by Keiron Henderson