The 50 ppm gasoil heating fuel market in the Amsterdam-Rotterdam-Antwerp
region has strengthened on strong demand at the prompt, lowering the spread to
the 10 ppm ultra low sulfur diesel (ULSD) market to the narrowest point since

S&P Global Platts assessed 50 ppm FOB ARA gasoil barges at a $1/mt
discount to the 10 ppm FOB ARA diesel barge market Friday, narrowing $1.25/mt
on day.

The last time spreads between these two spot physical markets were this
close was on July 4, when the spread was at a 50 cents/mt discount.

Differentials for 50 ppm gasoil, trading in the ARA barge market, also
moved back into positive territory against low sulfur gasoil futures Thursday,
to be assessed at a 25 cents/mt premium, up 50 cents/mt on the day.

Furthermore, in the absence of a paper market, a daily 16 cents/mt
backwardated structure was defined across the assessment curve for the
physical market, further demonstrating the tight market fundamentals. A bid as
high as a 50 cents/mt premium at the close of the S&P Global Platts Market On
Close assessment process over the front end of the assessment range.

This strength ties in with the rising demand for heating fuel in the
north of Europe, particularly from Germany, which is the market’s biggest
consumer market, but also from the limited gasoil streams in the region,
according to market sources.

–Ahila Karan,

–Edited by James Leech,

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