``The market went up quite a lot this morning, I'm not sure what is behind this and there are a few companies bidding,'' one trader said.

July gas oil paper was last quoted at $17.95/$18.05 per barrel up 55 cents from Friday, brokers said.

They said July traded earlier in the day at $17.92, $17.95 and $18.00 with no one player dominating the trade.

Gas oil had on Tuesday bucked a crude-led downtrend and on Wednesday had outpaced the overnight crude gains.

Traders speculated that part of the bullishness could be in anticipation of Indian demand arising from the delay to the start-up of the Reliance Jamnagar refinery.

Others also cited the larger-than-expected Indonesian purchases which could total five or even six cargoes, including two from Kuwait Petroleum Corp. Pertamina has so far confirmed the purchase of four cargoes.

Traders said a large increase to overnight gasoil prices in the West led to some catching up in prices here. The market has so far ignored news of increased refinery runs in South Korea where all three major refiners have raised production to near full capacity for June.

US July light crude futures closed up 22 cents cents in New York on Tuesday at $18.55 per barrel with the gains extended on access to last trade up five cents to $18.60 by 0400 GMT.

Fuel oil gained in tandem with crude but fundamentals were bearish in part due to the higher runs in South Korea and dismal spot demand from China.

July fuel swaps were last quoted at $88.25/$89.00 per tonne up from Tuesday's $87.50/$88.25, brokers said.

The front month weakness has led to a small contango developing between July and August with the spread last valued at about minus 50 to 25 cents.