Europe Distillates/Fuel Oil-pressured by floating storage

LONDON, Nov 12 (Reuters) - Spot differentials on European
physical middle distillates were weak on Thursday, pressured by
rising levels of floating storage and signs end-user demand
remains weak.

Relatively mild weather has also depressed demand for
heating oil, which pushed stocks of distillates higher in Europe
last week. [ARA/]

Stocks in independent storage at the ARA hub rose by almost
100,000 barrels last week, Dutch oil analyst Pieter Kulsen said.

"If you look at inland markets such as Germany, France and
Switzerland, interest in heating oil, which is the core
business, is very low so that keeps demand very slow," Kulsen
said.

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ICE GAS OIL

* Benchmark November ICE gas oil expired on Thursday at $620
a tonne, with the December contract in a $10.50 contango at 1200
GMT. Brent crude oil for December delivery was trading $1.84 a
barrel lower at $76.11 by 1743 GMT.

* December gas oil was trading at $617.50 a tonne at the
same time, with prices pressured by the late sell-off in crude.

LGOc1 LCOc1 NEWOILOIL

* Gas oil's crack to Brent was weaker at $6.69 a barrel from
$7.43 on Wednesday. LGO-LCO1=R

GAS OIL

* Cargo differentials fell because of selling pressure with
limited local buying pressure.

* Differentials fell to around December plus $2 a tonne CIF
NWE from plus $9 earlier this week. No bids were seen.

* Traders said buyers are working on purchase plans for next
month which kept market activity thin.

* In the Mediterranean, differentials fell to discount
levels of December minus $2 a tonne CIF.

DIESEL

* Differentials on 10ppm diesel barges eased by about $7
from Wednesday to trade at premiums around $9 a tonne fob ARA.

JET FUEL

* Cargoes were discussed around December plus $47 and plus
$48 a tonne cif NWE, steady from Wednesday.

SWAPS

* Jet swaps traded at $47.25/$47.50 on Thursday with the
market in a slight contango. December was at $48/$49 while
January was just $1 higher.

* The East/West spread was at minus $6.00/$7.00 a tonne for
November, which could see higher exports arrive from Asia.

FUEL OIL <EURO/DIFF/FO>

* High sulphur fuel oil (HSFO) barges with 3.5 percent
sulphur traded down at $437 a tonne fob ARA from $450-$453 on
Wednesday.

* HSFO's crack to dated Brent weakened to minus $6.00 a
barrel from minus $5.00 on Wednesday.

(Reporting by David Sheppard and Ikuko Kurahone; Editing
by Sue Thomas)