"The market is just extending losses witnessed in the physical market," one gas oil trader said. "Indonesian demand alone is not providing much bullish impetus with the absence of China." Indonesia was rumoured to have obtained permission from two oil majors to load some 600,000 barrels of gas oil from Singapore, after producing credible payment guarantees, but this did not provide bullish impetus for the paper market, traders said.

On Thursday's physical market, a European major who had stemmed the market's fall from lower crude values this week came out to buy but was overwhelmed by sellers, they said.

The major bought a cargo at $15.20 per barrel but the same price was offered at market's closing without any further bid response. In a bid to cover shorts into Indonesia and India while at the same time supporting their paper positions, the major provided afloor for the market at $15.45 to $15.50 per barrel.

July gas oil swaps, with lower liquidity now was last offered at $15.15 per barrel with no bids, brokers said.

August, a more active market was last quoted at$15.25/$15.35 per barrel, they said.

Brokers said no trade was done so far but both market prices were lower by 15-20 cents from Thursday.

The fall was also partly attributed to crude. August Brenton the London IPE ended 12 cents per barrel weaker at $13.00, 32 cents off the day's high in choppy Thursday trading.

Fuel oil swaps were more active but prices remained fairly stable with balanced fundamentals, traders said.

Trades were rumoured done for August paper at $66.25 and $66.75 per barrel, the former bought by a Wall Street trader but could not be confirmed, they said.

July fuel oil was last discussed at $65.00/$65.75 per tonne with August at $66.50/$67.00, unchanged to 25 cents lower from Thursday, brokers said.

In the Singapore physical market on Thursday, a local trader bought20,000 tonnes of 180-centistoke fuel oil from a US Major at $66.00 per tonne, the same level bid on Wednesday.

The fall in crude shaved 5 cents off naphtha swaps which were thinly talked at $14.15/$14.25 per barrel for July, they said.

August was talked at $14.20/$14.30 per barrel. The contango narrowed in line with Japan naphtha open specification contracts, brokers said.