Europe Distillates-Physical diffs hold steady

LONDON, July 3 (Reuters) - Differentials on physical
European middle distillates held mostly steady on Friday as
demand remained weak with bulging inventories.

"The market has not changed much for past two weeks. Diesel
demand has not risen as much as we wanted," one trader said.

DIESEL

* Barges of 10ppm diesel traded at premiums of $10/$10.75 a
tonne fob ARA to July gas oil futures, compared with deals at
$9/$11.50 on Thursday.

* One cargo traded at August plus $9 a tonne cif NWE.

GAS OIL

* Barges of gas oil with 0.1 percent sulphur traded at $1
discounts and parity to July gas oil futures, compared with
Thursday's deals at $1/$4 discounts.

* Crack swaps weakened by about 30 cents across the curve.
The balance of July was plus $5.70/$5.80 a barrel and August
$6.40/$6.50.

JET FUEL

* Barges traded at July plus $43 a tonne fob ARA, falling
from Thursday's trade at July plus $47.

* Cargoes were bid at July plus $52 a tonne cif and August
plus $42/$44.

* Swaps were little changed. The balance of July was
benchmark plus $52.50/$53 a tonne cif NWE and August was
$50.50/$51.00.

ICE GAS OIL

* July ICE gas oil futures fell for the fourth day. They
were trading $6 lower at $529.25 by 1637 GMT.

* The contango between July and August was $9.50 a tonne, 25
cents narrower than Thursday's close.

* The prompt crack fell to $6.51 a barrel from $7.01.

* Brent crude futures LCOc1 were trading 82 cents lower at
$65.83 a barrel.
(Reporting by Ikuko Kao; editing by James Jukwey)