Europe Distillates-ICE futures drag physical prices lower

LONDON, June 15 (Reuters) - Differentials on physical middle
distillate barges and cargoes recovered marginally on Monday,
but the rise was offset by sharper falls in benchmark ICE gas
oil futures due to weak demand and heavy inventories.

DIESEL

* Premiums on 10ppm diesel barges were pressured down near
10-month-low levels, failing to offset a drop in benchmark ICE
gas oil futures due to weak demand.

* Barges traded at premiums of $1 and $2 a tonne fob ARA to
July gas oil futures.

* Last week, the differential hit parity to July gas oil,
the lowest since August last year.

* Cargoes of 10ppm diesel with the French summer spec traded
at premiums of $7 and $12 a tonne cif NWE, compared with
Friday's level offered at July plus $6 and $10.

* In the Mediterranean, the French summer spec was bid at
July plus $10.50 a tonne cif, unchanged from Friday.

ICE

* July ICE gas oil futures LGOc1 was trading $10.50 lower
at $571.50 by 1653 GMT.

* The prompt crack was $7.45 a barrel and the contango
between July and August was $10.75 a tonne.

GAS OIL

* Barges of gas oil with 0.1 percent sulphur traded at July
minus $10/$12.50 a tonne fob ARA, compared with Friday's deals
at July minus $12/$15.

* A cargo of gas oil with 0.1 percent sulphur was bid at
July minus $8 a tonne cif NWE.

* Russian gas oil with 0.2 percent sulphur was bid at July
minus $7/$9 a tonne cif MED, compared with Thursday's level at
$10.

JET FUEL

* Vitol offered three cargoes and BP made four bids. One
cargo traded between them at a premium of $49 a tonne cif NWE to
July gas oil futures, $9 up from Friday.

* Jet fuel cargo swaps rose about $1 across the curve and
the front end of the curve has remained in contango since late
last week. The balance of June was $48.50/$49.50 a tonne cif and
July $49.00/$50.50.

* Barges of jet fuel were sold at July plus $50 a tonne fob
ARA, down $1 from Friday.

ARBITRAGE

* Arbitrage imports from the United States and Asia are
likely to be limited for the rest of June and July.

(Reporting by Ikuko Kao and Emma Farge; editing by Sue
Thomas)