LONDON, Feb 11 (Reuters) - Diesel barge differentials were
steady on Monday, supported by cold weather in North America and
Europe and as refineries prioritised the output of other fuels.
'Kerosene differentials got very strong due to a lack of
imports from Asia, and mogas blew out, prompting refiners to
maximise heavy naphtha (production) at the expense of kerosene,
which was being used in diesel,' a trader said.
Middle distillates overall have been relatively strong so
far this year. Gasoil futures are up 10.7 percent so far
this year, compared with a 6.5 percent rise for Brent crude oil .
This strength comes in part because speculative traders have
been piling into gasoil futures, raising their net long
positions by 13,940 contracts last week to 91,036 on Friday,
data from the Intercontinental Exchange showed.
Distillates stocks rose 1.0 percent from December to 372.0
million barrels, data from Euroilstock showed, but were down
sharply year-on-year by 7.5 percent due to weak demand for
gasoil in a relatively mild winter.
* No gasoil barges traded in the window for a third session
on Monday. Bids came in at a $4 discount, while offers were at a
$2 discount. This was around $1 weaker than the day before.
* A bid for 50 ppm gasoil was seen at $14 a tonne over March
ICE gasoil futures and an offer at $17 a tonne above.
* At 1646 GMT, February ICE gasoil futures were down 0.49
percent at $1,025.75 a tonne.
* The ICE gasoil crack was at $17.64 a barrel,
slightly lower than the $17.91 Friday close.
* A day ahead of gasoil expiry, ICE gasoil was in a
backwardation of $11.75 a tonne February/March, in
line with Friday's level.
* Four barges traded at premiums to March gasoil futures of
$17-$18 a tonne fob ARA, in line with one which traded at $17 on
* Statoil and JP Morgan sold to Vitol and Unipec.
* One jet fuel barge traded in the window at March ICE
gasoil futures plus $77 per tonne fob ARA. Shell sold to BP.
* One cargo traded at March ICE gasoil futures plus $90 a
tonne cif NWE, while on Friday there were bids in the $92-$93 a
* Barges of low-sulphur fuel oil (LSFO) with 1 percent
sulphur content traded at $687-$691 a tonne fob ARA, down a
touch from the $690-$693 a tonne on Friday.
* Barges of high-sulphur fuel oil (HSFO) with 3.5 percent
sulphur content traded at $640.50-$642 a tonne, down from the
$644-$644.50 a tonne the day before.
(Reporting by Simon Falush; editing by Jane Baird)
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