London (Platts)--15Apr2013/1243 pm EDT/1643 GMT

Physical gasoil cracks across Europe were falling Monday driven by weaker market fundamentals in NWE pushing the gasoil-Brent spread lower.

"Distillate cracks have come under pressure, with the gasoil markets steeper decline driving the cracks lower," said a trader, highlighting the different pace of falls in both the gasoil and dated Brent markets.

"If [the] trend continues, gasoil cracks would go back to being bottom of the distillates," said another trader.

CIF Mediterranean cracks were assessed at $14.38/barrel, versus $15.11/b week-on-week and $14.81/b month-on-month. This is relative to a 2013 high of $18.55/b seen on February 6.

In the barge markets, 50 ppm cracks came off from $15.75/b on Friday, versus $16.55/b week-on-week, and a 2013 high of $19.04/b seen on February 8.

0.1% barge cracks were assessed at $13.11/b in the previous session, versus $13.31/b week-on-week, and a 2013 high of $18.11/b on February 8.

The larger than expected physical delivery on expiry of the April contract for ICE 0.1% gasoil reflected length in the Amsterdam-Rotterdam-Antwerp region, with an overhang of supply, and demand at sub-optimal levels.

This bearish picture has added further pressure and momentum to the downside of gasoil prices. Cracks have otherwise been trading rangebound within a $1.00/b range for each gasoil market.

On the derivative side, the gasoil crack -- the difference between the prompt contracts for ICE 0.1% gasoil futures and ICE Brent futures -- contracted to $13.24/b, on Friday, versus $14.25/b, month-on-month, and a high of $19.37/b, seen on February 11.

Bearish economic data out of the US and Europe and reduced forecasts for global petroleum demand for 2013 has added to pressure across the gasoil and Brent futures markets. The prompt contract for ICE gasoil future fell by $73.50/mt in the last 10 days, whilst the price of ICE Brent futures has fallen $8.92/b in the same period, Platts data showed.

--Mustafa Alaskari, mustafa_alaskari@Platts.com

--Edited by Martin O'Rourke, martin_orourke@platts.com

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