LONDON, Nov 14 (Reuters) - Diesel barge premiums in
northwest Europe slipped on Thursday as demand languished, while
stocks in the ARA region dropped to their lowest level in 11
The December ICE gasoil futures traded during the day at a
deeper discount of $1.75 a tonne against the January contract,
in what is known as contango, reflecting the weak demand.
But the contango was not strong enough to cover the costs of
placing distillates stocks in storage, traders said.
'The structure needs to get stronger. A $1.75 a tonne
contango is good, but it does not cover the costs to put this
oil in a tank,' a trader said.
At the same time, Gasoil stocks independently held at ARA
dropped to their lowest level since December last year, data
from Dutch oil consultant Patrick Kulsen showed.
The apparent discrepancy in the supply-demand balance was
risky as the peak winter demand season approaches, analysts at
BNP Paribas said in a note.
'Given Europe's pre-winter distillate stock position this
year, the first waves of cold temperature and even a normal
winter can tighten balances swiftly,' they said.
'The current flat structure of the ICE Gasoil futures curve
suggests a certain degree of market complacency ahead of the
winter season, which we do not share,' they added.
Hellenic Petroleum has halted its Thessaloniki
refinery due to poor profit margins and will only restart it
when economic conditions allow, providing more evidence of tough
conditions for refiners in the Mediterranean.
* Three barges of 0.1 percent gasoil traded in the window at
a discount of $0.50-$1 a tonne fob ARA to the December ICE
gasoil futures, compared with Wednesday's discount of $1 a
tonne. Vitol sold to BP and Glencore.
* No barges of 50 ppm gasoil traded. There were no bids and
one offer came in at $16 a tonne fob ARA above the December
* December ICE gasoil futures were up $11.50 to
$912.75 a tonne at 1655 GMT.
* The ICE gasoil crack was at $13.89 a tonne,
unchanged from Wednesday.
* December and January ICE gasoil futures were in a contango of $1.25 cents a tonne, unchanged.
* Seven diesel barges traded, including two at $14 a tonne
fob ARA above the December gasoil futures, down from $15-$16 a
tonne on Wednesday. The other trades were on a formula basis.
* Shell and BP sold to Cargill and Morgan Stanley.
* One cargo traded in northwest Europe. Litasco sold to
Total a cargo of French winter spec diesel at $19 a tonne cif
NWE above the December gasoil futures.
* No cargoes traded in the Mediterranean. Gunvor offered one
cargo cif Lavera while Total, Vitol and Litasco bid for a cargo
* No jet fuel barges traded as there were no offers. Morgan
Stanley bid for two barges at $64 a tonne fob ARA above the
December gasoil futures.
* No cargoes traded. Vitol offered one cargo.
* Barges of low-sulphur fuel oil with 1 percent sulphur
content traded at $592 a tonne fob ARA, compared with $590 a
tonne on Wednesday.
* Barges of high-sulphur fuel oil with 3.5 percent sulphur
content traded at $567.25-$571 a tonne fob ARA, compared with
$565.50-$567 a tonne.
(Reporting by Ron Bousso; Editing by Pravin Char)
((Ron Bousso)(email: firstname.lastname@example.org)(Tel.:
+44)(0)(207 542 2161)(Reuters Messaging:
Keywords: MARKETS EUROPE/DISTILLATES
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