The Mediterranean 0.1% gasoil CIF cargo market has hit a fresh 10-month high amid strong demand from Algeria and Libya this month and rising heating fuel demand from European markets, sources said.
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S&P Global Platts assessed 0.1% gasoil CIF Mediterranean cargoes at a $6.25/mt premium to low sulfur gasoil futures Thursday, up $2.00/mt day.
Strong demand from Algeria for 0.1% gasoil for December together with a healthy stream of demand from the Libyan market have contributed to market tightness of late.
Algeria sought six cargoes for December, higher than its more usual monthly volume of two cargoes. Meanwhile, Libya took its regular volume of six cargoes of 0.1% gasoil.
Additional demand from France and Greece for heating fuel grades of 0.1% gasoil has also tightened fundamentals, supporting pricing differentials over the winter months, sources said.