LONDON, Jan 8 (Reuters) - Tightening supplies underpinned
gasoil, jet fuel and diesel on Tuesday as December run cuts
began to be felt.
Gasoil was particularly tight in the Mediterranean and jet
fuel was firming there and in northwest Europe, traders said.
Arbitrage opportunities to import supplies to structurally short
Europe were also closed, one trader added.
The expectation of cold weather coming soon has helped buoy
gasoil cracks, which have risen about $2.00 since Friday. North
African demand was also picking up, several traders said.
Diesel firmed slightly but more due to run cuts than demand.
'Some demand in West Mediterranean, very little in East
Mediterranean,' another diesel trader said, 'Overall market is
* Three barges of 0.1 percent gasoil traded at a discount to
January ICE gasoil futures of $1 a tonne fob ARA, unchanged from
* Vitol and Gunvor sold to Chevron and Mercuria.
* No barges of 50 ppm gasoil traded, but bids and offers
came at premiums to January ICE gasoil futures of $18-$19 a
tonne fob ARA, up from $15-$17 a tonne in the previous session.
* At 1742 GMT, January ICE gasoil futures were up
0.75 percent at $945.50 a tonne.
* The ICE gasoil crack was trading at $15.30 a
barrel up from $14.92 a barrel around the same time on Monday.
* The contango for January/February ICE gasoil
narrowed to $1.25 a tonne, from $1.75 a tonne on Monday.
* No gasoil cargoes were discussed in Northwest Europe.
* Glencore and Gunvor bid for cargoes in the Mediterranean
at premiums to February ICE gasoil futures plus $10-$11 a tonne
* Six diesel barges traded at premiums to January ICE Ultra
Low Sulphur Diesel futures of $23 a tonne fob ARA. Monday's
deals were done at $20-$21 premiums to the higher sulphur
contract, January ICE gasoil futures.
* BP sold all the barges to Trafigura.
* In Northwest Europe, no cargoes traded but Gunvor offered
a cargo at CCH plus $2.00 and BP bid at a premium to February
ICE gasoil futures of $26.00 a tonne cif NWE.
* In the Mediterranean, no cargoes traded but Gunvor offered
two cargoes one at CCH plus 50 cents and another at a premium to
February ICE gasoil futures of $28.50 a tonne cif Med.
* Vitol bid for a cargo at CCH flat and Trafigura bid for
another at CCM minus $3.00 a tonne cif Med.
* Three jet fuel barges traded at February ICE gasoil
futures plus $74-$75 a tonne fob ARA, following a day of no
* No cargoes traded but Vitol bid at CCM plus $3.00 and
Morgan Stanley at CCM plus $2.00 and a premium to February ICE
gasoil futures of $78 a tonne cif Northwest Europe. BP offered a
cargo at CCM plus $1.00 a tonne cif NWE.
* No barges of low-sulphur fuel oil (LSFO) with 1 percent
sulphur content traded but discussions were in the range of
$631-$633 a tonne fob ARA, up from deals on Monday's trades at
$624-$625 a tonne.
* Barges of high-sulphur fuel oil (HSFO) with 3.5 percent
sulphur content traded at $605-$606.50 a tonne, up slightly from
Monday's deals at $602.50-$603.50 a tonne.
(Reporting by Julia Payne; Editing by Anthony Barker)
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Keywords: MARKETS EUROPE/GASOLINE
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