LONDON, June 11 (Reuters) - The backwardation at the front end of the ICE gasoil futures curved widened to almost $6 a tonne on Monday, with prices expected to fall next month as supplies increase. Backwardation is when the spot price is higher than for products for future delivery. Gasoil was stronger today despite weakness in crude oil futures. Diesel traders said demand had picked up a bit last week on the back of lower prices, with end-consumers in Germany buying more. "But today with the flat price rising it is pretty quiet," said one diesel barge trader. However, rising supplies due to a larger Baltic refinery programme and cargoes coming to Europe from the United States may push prices down again, another trader said. "We have around 600,000 tonnes of local production coming back in, and a lot of transatlantic cargoes will be arriving as well," he said. "The gasoil structure is slowly weakening." In the UK, workers from the Coryton oil refinery disrupted supplies of fuel heading to petrol stations to protest against the plant's closure. Union officials said they would aim to disrupt supplies from nearby terminals for a few hours every day and that the action would continue for as long as necessary. GASOIL * One gasoil barge traded in the window, at a flat price to June ICE gasoil futures compared with trades at a discount of 25 cents a tonne fob ARA on Friday. China Oil Hong Kong sold the barge to Cargill. * Two 50 ppm gasoil barges traded at premiums to July ICE gasoil futures of $14-$15 a tonne fob ARA, compared with Friday's trade at a premium to June ICE gasoil futures of $10 a tonne. ConocoPhillips sold both the barges, to North Sea Group and Glencore. * By 1556 GMT, June ICE gasoil futures were up 1.01 percent at $854 a tonne. * The backwardation for June/July LGO-1=R was at $5.75 a tonne, widening out from Friday's $3.75 a tonne. * June ICE gasoil refining margins LGO-LCO1=R were trading at around $15.32 a barrel, slightly stronger than the $15.05 a barrel seen on Friday. DIESEL ULSD10-BD-ARA * Seven diesel barges traded at premiums to July ICE gasoil of $20 a tonne fob ARA, compared with Friday's premiums to June ICE gasoil of $14 a tonne. * Vitol and Morgan Stanley were buyers, whilst Litasco, Statoil and Unipec were sellers. * A UK summer specification diesel cargo traded in the northwest Europe market at a premium to June ICE gasoil futures of $20 a tonne cif Thames. BP bought the cargo from Neste. JET FUEL JET-BD-ARA * Two jet fuel barges changed hands at premiums to July ICE gasoil futures of $60 a tonne fob ARA. * KLM sold both the barges, one to Morgan Stanley and the other to Shell. * Jet premiums have slipped over the past week as more supplies are said to be on the way from the Middle East and Asia and demand has yet to improve, although the summer holiday season is now underway. * "I think the supposed barrels heading this way are having some effect but it is more a lack of demand still," said one broker. Another said that demand should pick up as the summer goes on, but the airlines have been very quiet to date. * Flybe, Europe's largest regional airline, posted a steep fall in full-year profit, hit by tough economic conditions in Britain and rising fuel costs. * No cargoes traded, but bids came at premiums to July ICE gasoil futures of $63 a tonne cif NWE, whilst offers came at premiums to June ICE gasoil futures of $56 a tonne. FUEL OIL * Barges of low-sulphur fuel oil (LSFO) with 1 percent sulphur content were discussed at $607-$609 a tonne fob ARA, up from Friday's trades at $604 a tonne. * Barges of high-sulphur fuel oil (HSFO) with 3.5 percent sulphur traded at $566-$572 a tonne fob ARA, up from Friday's trades at $562-$565 a tonne. (Reporting by Claire Milhench; Editing by Alison Birrane)

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