LONDON, Dec 2 (Reuters) - Diesel barge differentials in northwest Europe sunk to their lowest level in ten months on Monday as demand languished while product imports in December were expected to keep the market well supplied.
Ultra-low sulphur diesel barges traded during the Platts window at premiums of $6.50 a tonne fob ARA over December gasoil futures
"With demand staying out and product available, I think we haven't seen the bottom yet," a barge trader said.
At the same time, gasoil barge differentials rose steadily in recent days on expectations of rising demand as colder weather sets in the region, but demand in northwest Europe was still modest.
"Everyone is watching weather forecasts as cold spikes could trigger very fast extra demand," a trader said.
Tenders to buy gasoil from Turkey, Greece and Egypt have further tightened the market as supplies move from the ARA hub to the Mediterranean, traders said.
Exports of Russian gasoil with sulphur content of up to 350 parts per million (ppm) from the Baltic Sea port of Primorsk will rise 58 percent in December from the previous month to reach 190,000 tonnes, traders said.
Exports of ultra low sulphur diesel (ULSD) are set to reach 630,000 tonnes, down 11.8 percent from November.
Total gasoil and diesel exports are expected to decline 1.7 percent in December to 820,000 tonnes, the traders said.
Strong diesel demand and prices in Russia, weak demand in Europe and higher tanker freight rates in the Baltic were seen as the reasons for the drop in diesel exports, according to traders.
GASOIL
* One barge of 0.1 percent gasoil traded at 50 cents a tonne fob ARA above the December ICE gasoil futures, up from flat to the gasoil contract on Friday. Gunvor sold to BP.
* No barges of 50 ppm gasoil traded. Offers were seen at $5 a tonne fob ARA above the December gasoil futures, down from Friday's trades at $8 a tonne premiums.
* There were no gasoil cargo trades in northwest Europe. Gunvor bid for one cargo cif Le Havre at $4.00 a tonne above the January gasoil futures, down from $4.50 a tonne on Friday.
* In the Mediterranean, Glencore bid for one cargo cif Genoa.
* There were no trades in the Mediterranean. Gunvor bid for one cargo cif Thessaloniki.
* By 1651 GMT December ICE gasoil futures
* The ICE gasoil crack
* December and January ICE gasoil futures flipped into a contango
DIESEL
* Six diesel barges traded at $6.50-$8 a tonne fob ARA above the December gasoil futures, compared with premiums of $11-$12 a tonne on Friday. Vitol, Shell and BP sold to Mocoh, Morgan Stanley and Gunvor.
* No cargoes traded in northwest Europe. There were two offers for French winter spec from Vitol at $14.50 and $16 a tonne cif Le Havre above the January gasoil futures. Phillips 66 and Morgan Stanley bid for two cargoes of French and German winter diesel.
* In the Mediterranean, Vitol sold to ERG one cargo of French winter spec at $19.25 a tonne cif Koper.
JET FUEL
* One jet fuel barge traded at $68 a tonne fob ARA above the December gasoil futures. LFC sold to Shell.
* No cargoes traded. BP and Trafigura bid for two cargoes, there were no offers.
FUEL OIL
* Barges of low-sulphur fuel oil (LSFO) with 1 percent sulphur content traded at $620 a tonne fob ARA.
* Barges of high-sulphur fuel oil (HSFO) with 3.5 percent sulphur content traded at $576.75-$578.50 a tonne fob ARA, up from $572.50-$574.75 a tonne.
(Reporting by Ron Bousso; editing by Anthony Barker)
((Ron Bousso)(email: ron.bousso@thomsonreuters.com)(Tel.: +44)(0)(207 542 2161)(Reuters Messaging: ron.bousso.reuters.com@reuters.net))
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