March 1, 2012 / 5:26 PM / in 6 years

Europe Distillates-Cracks dip on weak demand

 LONDON, March 1 (Reuters) - Gasoil refining margins
fell on Thursday as demand remained lacklustre in the face of
high outright prices, whilst differentials drifted sideways in
light trade. 	
 The ICE gasoil crack was down at around $11.89 a barrel,
lows not seen since early October 2011, which analysts at JBC
Energy attributed to weak demand.	
 "Gas oil/diesel requirements from key consuming countries
have been recording negative year-on-year growth figures for
quite some time now, and given recent near record-high diesel
pump prices, we could see a continuation of this trend over the
coming period," they said in a note.  	
 Gasoil stocks independently held in the
Amsterdam-Rotterdam-Antwerp hub fell marginally week-on-week to
2.535 million tonnes from 2.562 million tonnes, according to
data from Dutch oil analyst Pieter Kulsen. 	
 The ICE gasoil curve has moved into a slight contango of
$1.50 a tonne at the front end, but this is not yet considered
strong enough to encourage traders to begin storing product.	
 * Five barges traded in the window at discounts to March ICE
gasoil of $3 a tonne fob ARA, in line with Wednesday's discounts
of $3-$4 a tonne.	
 * BP, Gunvor and Litasco were on the buy side, whilst Shell
and Vitol were sellers.  	
 * March ICE gasoil futures were up 0.97 percent to
$1,012.50 a tonne at 1659 GMT.	
 * The ICE gasoil crack LGO-LCO1=R slipped further to
$11.89 a barrel, from $13.29 a barrel around the same time on
 * The contango for March/April was at $1.75 a tonne,
widening from $1 a tonne on Wednesday. However, the spread was
still too thin to make storage attractive. 	
 * Three barges of 50 ppm gasoil traded at an $8 a tonne
premium to March ICE gasoil futures, down from an $11 premium on
 * North Sea Group sold all three barges to AIC and DS
 * Four diesel barges traded at $14 a tonne fob ARA over
March ICE futures, unchanged from Wednesday's differentials.	
 * AOT, ConocoPhillips and SK Energy were on the sell side,
whilst Morgan Stanley, Omneo and Cargill were buyers.	
 * In the Mediterranean, Totsa bought a cargo of French
winter specification diesel from Vitol. 	
 * No jet fuel barges traded in the window as there were no
offers. Bids came at premiums to March ICE gasoil futures of
$59-$60 a tonne fob ARA, down from Wednesday's trade at a
premium of $61 a tonne fob ARA.  	
 * There were no cargo trades either, with bids at premiums
to March ICE gasoil of $67 a tonne fob ARA and offers at
premiums of $71-$73 a tonne fob ARA.	
 * Barges of low-sulphur fuel oil (LSFO) with 1 percent
sulphur content traded at $749 a tonne fob ARA, up from $744 a
tonne on Wednesday.	
 * Barges of high-sulphur fuel oil (HSFO), with 3.5 percent
sulphur content traded at $704-$707 a tonne fob ARA, up from
$688-$694 a tonne on Wednesday.	
 (Reporting by Claire Milhench, editing by Jane Baird)	

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