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Europe Distillates-Barge diffs unchanged, BP cargo tender eyed

Fri, 13th Dec 2013 17:19

LONDON, Dec 13 (Reuters) - Diesel and heating oil bargedifferentials in northwest Europe were unchanged on Friday asthe market continued to wind down for Christmas.

Instead, traders were studying a large diesel buy tenderissued by BP for 2014. The oil major is seeking between300,000 and 400,000 tonnes a month for delivery into northwestEurope.

On the heating oil side, market participants do not expect asudden rush in demand before Christmas as the weather isforecast to be milder than usual over the next two weeks. "It'spretty calm," a barge broker said.

Gasoil stocks independently held at theAmsterdam-Rotterdam-Antwerp hub rose for the first time in eightweeks on Thursday, but are still below the seasonal norm.

Analysts at Commerzbank said that the situation remainedfundamentally tight, with gasoil stocks a good 25 percent belowthe five-year average.

Workers at Total's La Mede, Gonfreville,Grandpuits, Feyzin and Donges refineries voted to strike onFriday, choking output at the plants.

GASOIL

* No barges of 0.1 percent gasoil or 50 ppm traded.

* At 1706 GMT the January ICE gasoil futures contract was down $7.75 at $917.75 a tonne.

* The ICE gasoil crack was at $14.95 a barrel,down from $15.77 a barrel on Thursday.

* The January and February ICE gasoil futures contracts were in a small backwardation of 50 cents a tonne.

* In the northwest Europe market, Phillips 66 sold a 0.1percent gasoil cargo to Gunvor at a premium to January ICEgasoil futures of $4.50 a tonne.

DIESEL

* No diesel barges traded as there were no bids. Offers cameat premiums to January ICE gasoil futures of $8 a tonne fob ARA.

JET FUEL

* Three jet fuel barges traded, with Shell buying two fromVitol and one from BP.

* No cargoes traded. BP was bidding and Vitol offered.

FUEL OIL

* Barges of low-sulphur fuel oil (LSFO) with 1 percentsulphur content were discussed at $595-$601 a tonne fob ARA,down from Thursday's trades at $608-$609 a tonne.

* Barges of high-sulphur fuel oil (HSFO) with 3.5 percentsulphur content traded at $573-$575 a tonne fob ARA, up slightlyfrom Thursday's $573-$573.50 a tonne.

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