LONDON, Oct 8 (Reuters) - Diesel barge differentials in
northwest Europe fell to their lowest in a month on Tuesday as
supplies in the region were expected to increase in the coming
A large number of diesel tankers, including several vessels
that were planned to arrive in September, are expected to reach
the ARA region over the next 10 days, traders said.
This is the fifth straight session of declines in diesel
premiums after they reached a five-month high at the end of
Diesel premiums in the Mediterranean remained below
northwest Europe levels amid on demand there, while supplies
The drop in diesel prices has started affecting arbitrage
opportunities from the United States, traders said, with flows
expected to slow down towards the end of the month.
Jet fuel market was seen well supplied, with around 2
million tonnes expected to reach the region in October from Asia
and the Middle East.
'The refinery maintenance, some lack of demand teamed up
with barrels on the water has left the market looking balanced,'
a trader said.
* Five barges of 0.1 percent gasoil traded in the Platts
price assessment window at parity with October ICE gasoil
futures, similar to Monday's trades.
* Gunvor, AIC, and Vitol sold to Morgan Stanley and BP.
* Two barges of 50 ppm gasoil traded at $21-$22 a tonne fob
ARA above the October gasoil futures.
* October ICE gasoil futures were up $8.50 at
$934.75 a tonne at 1555 GMT.
* The ICE gasoil crack was at $15.16 a barrel,
up from $14.71 a barrel around the same time on Monday.
* October and November ICE gasoil futures were in a small
backwardation of 25 cents a tonne, similar to Monday.
* Nineteen barges of intermediate diesel traded at premiums
to October ICE gasoil futures of $22-$24 a tonne fob ARA,
slipping from $23-$27 a tonne on Monday.
* Vitol, Chevron and Trafigura sold to Morgan Stanley, Shell
* One cargo traded in northwest Europe. Vitol sold to
Glencore a cargo of French winter spec diesel at $29 a tonne cif
Amsterdam above the December gasoil futures.
* No cargoes traded in the Mediterranean. ERG offered one
cargo compared with seven bids from Litasco, ENI, Total and
* No jet fuel barges traded. There were no offers while BP
and Morgan Stanley bid for two barges each.
* No cargoes traded, either. Vitol offered two cargoes,
Morgan Stanley, Trafigura and Total bid for six cargoes.
* Barges of low sulphur fuel oil with 1 percent sulphur
content were discussed at $599-$601 a tonne fob ARA, up from
Monday's talks at $597-$601 a tonne.
* Barges of high sulphur fuel oil with 3.5 percent sulphur
content traded at $581.50-$583 a tonne fob ARA, lower than
Monday's deals at $583-$584.75 a tonne.
(Reporting by Ron Bousso, editing by William Hardy)
((Ron Bousso)(email: email@example.com)(Tel.:
+44)(0)(207 542 2161)(Reuters Messaging:
Keywords: MARKETS EUROPE/DISTILLATES
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