Europe Distillates-Contango narrows at ICE expiry

LONDON, July 10 (Reuters) - ICE gas oil futures' contango
narrowed on Friday as weak margins were likely to force refiners
to cut runs.

ICE GAS OIL

* July gas oil futures expired at $485.50 a tonne. Physical
delivery was 479 lots, or 47,900 tonnes.

* The prompt contango between July and August was $6.50 a
tonne at the expiry. When June expired last month, the prompt
contango was $9.50.

* August gas oil was trading at $2.00 up at $492.75 a tonne
by 1727 GMT.

* The August/September contango narrowed to $7.50 from $9.50
on Thursday.

DIESEL

* Barges of 10ppm diesel traded at premiums of $12/$13 a
tonne fob ARA.

* Cargoes were around August plus $8/$10 a tonne cif MED.

* Swaps were benchmark plus $15 for the balance of July cif
MED.

GAS OIL

* Barges of gas oil with 0.1 percent sulphur traded at
discounts of $7 a tonne fob ARA to August gas oil.

* Cargoes did not trade. But on the Mediterranean market 0.1
percent sulphur was bid at August minus $4 tonne cif.

* Cargo swaps were benchmark plus $5 a tonne cif MED for 0.1
percent gas oil for the balance of July.

GERMAN HEATING OIL

* German residential heating oil stocks rose to 64 percent
of capacity on July 1 from 63 percent on June 1, a trade source
said on Friday. [PROD/DE]

JET FUEL

* Cargoes were discussed around August plus $45/$56 a tonne
cif, about $4 higher than Thursday.

* Barge traded at July plus $39.

* Swaps were $52.50 a tonne cif NWE for August and $53.50
for September.

* Shipments of jet fuel to Europe from sources east of Suez
totalled 325,000 tonnes so far for lifting in July and will
mostly be stored at sea, traders said on Friday. [ID:nSP487165]

* European traders said the volume of jet fuel stored at sea
has not increased as some cargoes were sold ship-to-ship
and filled by new delivery due to the difficulty of storing
the fuel for long periods of time.

REFINERY RUNS

* The IEA said on Friday European refinery activity would
remain low in the third quarter.

* Europe's refinery throughputs are now revised down by
300,000 bpd from the agency's June report to average 12.9
million bpd, the agency said. [IEA/M]

(Reporting by Ikuko Kao; Editing by Keiron Henderson)