Gas oil differentials slipped in Europe on Wednesday, with outright prices failing to keep pace with a 1 percent jump in the benchmark gas oil future.
Relatively weak demand has weighed on cracking margins for distillates over the past week and analysts said refiners may soon reduce run rates.

"In the last month middle-distillate margins were very strong in Europe, at least until last week, which meant European refiners were increasing throughputs," JBC Energy analyst David Wech said, adding he saw refining activity falling in the coming weeks.

Total (TOTF.PA: Quote) said on Wednesday a crude distillation unit (CDU) at its UK Lindsey refinery closed since a fire on June 29 will remain offline until after an investigation into the incident.



GAS OIL

* Barges traded at discounts of $4 a tonne fob ARA to July ICE gas oil futures, down by $1 from Tuesday.

* Cargoes were discussed at discounts of $1 a tonne cif in Northwest Europe to July, falling by about $4 from Tuesday.

* July ICE gas oil futures rose $5.50 to $628.75 by 1709 GMT from the previous close.

* The contango between July and August was $2.25 a tonne and the prompt crack was around $11.47 a barrel by the same time.

* ICE Brent crude LCOc1 was trading $1.75 up at $73.20 a barrel.



DIESEL

* Barges traded at premiums of $7.75/$9 a tonne fob ARA to July ICE gas oil futures, unchanged from Tuesday.

* BP continued to bid in the cargo market around July plus $16 a tonne cif NWE for the French summer spec. But there was no sales for the British oil major for the third day.



JET FUEL

* Barges traded at July plus $45 a tonne fob ARA, down $2 a tonne from Tuesday.



FUEL OIL

* Barges of high sulphur fuel oil (HSFO) rose about $2 to $400-$401 a tonne fob ARA.

* HSFO's crack to Brent was around minus $9.50 a barrel