Europe Products-Gasoline pressured; Germany supports GO

LONDON, Nov 4 (Reuters) - European gasoline's crack to crude
oil was subdued, holding near a two-week low, on Wednesday as
slow U.S. demand kept the arbitrage export opportunity limited.

In contrast, differentials on gas oil barges in the inland
market gained some support from spot demand from Germany.

"There is a bit more heating demand from Germany this
morning," one broker said.

But the broker said that the increase in spot demand was
limited by the low Rhine water level, which might delay
deliveries of products.

Fuel oil was discussed at the highest price level in about
13 months due mainly to jumps in crude oil prices and some
extended shutdowns in European simple refineries.

GASOLINE AND NAPHTHA <EURO/DIFF/MOGAS>

* Barges of 10ppm premium unleaded winter gasoline firmed to
trade $705-$711 a tonne fob ARA from $700-$705 at Tuesday's
close.

* Gasoline's crack to dated Brent BFO- rose about 30 cents
to $6.75 barrel from $6.45 on Tuesday, which was the lowest
since Oct. 22, according to Reuters data.

* The pressures came from the U.S. weekly oil data late on
Tuesday. A report form industry group American Petroleum
Institute (API) showed a 501,000 barrel increase in the week to
Oct. 30 as higher pump prices softened demand.

* The API data is often used as a precursor for the U.S
government data due out at 1530 GMT. Analysts' forecast is an
300,000 barrel rise in gasoline inventories. [EIA/S]

* Brent crude LCOc1 were trading 30 cents up at $78.41 a
barrel by 1143 GMT.

* U.S. RBOB gasoline futures were up by 0.32 percent at
$2.0069 a gallon. Its crack to U.S. crude was weaker than
Eurograde's crack at around $4.27 a barrel.

* The gasoline backwardation between November and December
swaps fell to $2 a tonne. It halved to $3 at Tuesday's close
from the previous day.

* The outright November swap rose around $5 to $703.75 a
tonne fob ARA

* Swaps showed that the arbitrage for November and December
to ship gasoline to the United States was open and that traders
could expect to make a profit of 30 cents in November and $3.20
in December.

* The structure of the naphtha curve also flattened and the
November/December backwardation fell to $1 from around $3 on
Tuesday.

* Crack spreads for November were minus $3.90 a barrel and
minus $4.75 a barrel for December.

MIDDLE DISTILLATES <EURO/DIFF/GO>

* Differentials on gas oil barges rose due to some buying
interest from Germany.

* Barges of gas oil with 0.1 percent sulphur were bid at
$9/$8 discounts a tonne fob ARA to November gas oil futures,
compared with Tuesday's deals at $10 discounts.

* Refinery material barges were offered at $2/$3 discounts
fob Rotterdam and $3 discounts fob Antwerp.

* One barge of 10ppm diesel traded at the benchmark plus $13
a tonne fob ARA for the second half of November. Prompt barges
were offered around $10.50 premiums. Tuesday's deals were done
around $8 premiums.

* Benchmark November ICE gas oil futures rose $14.75, or
2.36 percent, to $640.00 a tonne, with the contago to December
at $8.25 by 1217 GMT. LGOc1 NEWOILOIL

* Gas oil's crack to ICE Brent futures was at $7.87/$8.47 a
barrel, compared with $8.32 at the close. LGO-LCO1=R

* Traders said at least two companies would lift gas oil,
with 0.1 percent sulphur or higher, from India later in
November. The gas oil was likely to shipped to Europe and stored
as floating storage.

FUEL OIL <EURO/DIFF/FO>

* High sulphur fuel oil (HSFO) barges with 3.5 percent
sulphur were discussed between $450 and $456 a tonne fob ARA,
the highest price levels in 13 months and about $8 up from
Tuesday's close.

* Traders attributed the rise to the gains in crude oil
prices after the European market on Tuesday, which pushed HSFO's
two week low at minus $6.90 a barrel.

* So far on Wednesday, the crack to Brent was around minus
$6.10.

* HSFO's crack fell to as low as minus $8.90 a barrel in
mid-October due to a large imports into the ARA area. But
extended maintenance shutdowns at some simple refineries, such
as the Wilhemshaven plant in Germany, have provided some support
since then. [REF/E]

* Still, the strength of HSFO's crack has been capped as a
large part of spot Asian demand has been met by competing
supplies from the Middle East, traders said.

(Reporting by Emma Farge and Ikuko Kurahone)