Europe Distillates/Fuel Oil-German GO demand up, HSFO year high

LONDON, Nov 4 (Reuters) - Differentials on physical gas oil
in Europe's inland market gained some support from spot demand
from Germany on Wednedsay.

"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 rose to the highest price level in about 13 months
due mainly to jumps in crude oil prices and some extended
shutdowns in European simple refineries.

GAS OIL

* Barges of gas oil with 0.1 percent sulphur traded at
discounts of $8 a tonne fob ARA to November ICE gas oil futures,
slightly firmer than Tuesday's deals at $8/$10 discounts.

* Earlier in the day, refinery material barges were offered
at $2/$3 discounts fob Rotterdam and $3 discounts fob Antwerp.

* The differentials improved from a $14 discount on Monday,
the lowest since June but the levels were still below $3/$7
premiums in November last year.

* Differentials on the cargo market were also supported by
bids from ConocoPillips. The firm was looking for the German
industry spec at December ICE gas oil futures minus $6 a tonne
cif NWE, up $1 from Tuesday's level and the French spec at
December minus $4. The company's Wilhelmshaven refinery has been
closed since October for maintenance for about 10 weeks. [REF/E]

* In the Mediterranean, Vitol bought a cargo of gas oil with
0.1 percent sulphur at the average spot quote minus $1 a tonne
cif. Traders said the company offered some 100,000 tonne cargoes
from floating storage earlier this week. It was lifting some gas
oil from India, which was likely to transferred to Europe for
floating storage, they said.

* This was not confirmed by Vitol.

* On the swaps market, gas oil east/west spreads were
unchanged at near parity for November, with European prices
priced just 50 cents a tonne above Asian levels. December
east/wests were wider at minus $6.50 a tonne.

DIESEL

* Differentials on 10ppm diesel barges firmed slightly.
Barges traded at a premium of $8/$9 a tonne fob ARA to November
gas oil futures.

* Differentials on cargoes dipped. A cargo of the French
winter spec traded at November plus $16 a tonne cif NWE, down $4
from Tuesday.

* ConocoPhillips bid the German spec ad December plus $6 a
tonne cif.

JET FUEL

* Cargoes were discussed in a wide range between December
plus $39 and plus $50 a tonne cif NWE. Vitol and Morgan Stanley
were the bidders, while BP offered four cargoes.

* A barge traded at November plus $49 a tonne fob.

* Jet fuel swaps were spurred higher by stronger bids in the
spot market, moving to flat for November/December from a 75 cent
contango.

* November swaps were at $45 a tonne cif NWE, up from $43.75
on Tuesday.

ICE GAS OIL

* Benchmark November ICE gas oil futures rose $8.50, or 1.4
percent, to $634.50 a tonne, with the contago to December at
$8.10 by 1832 GMT. LGOc1 NEWOILOIL

* Gas oil's crack to ICE Brent futures was at $7.54/$8.47 a
barrel, compared with $8.32 at the close. LGO-LCO1=R

FUEL OIL <EURO/DIFF/FO>

* High sulphur fuel oil (HSFO) barges with 3.5 percent
sulphur were discussed between $456 and $458 a tonne fob ARA,
the highest price levels in 13 months and about $14 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
$5.95.

* 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)