NEW YORK, June 29 (Reuters) - The spread between U.S. distillate futures and ICE gasoil futures widened to its largest since March 2015, supported by the unseasonable strength in diesel demand and expectations for supply tightness in U.S. biofuels compliance credits.
* The spread HO-LGO1=R touched a high of $0.0946 on Wednesday, highest since March 4, 2015 when it hit a high of $0.0954.
* Traders cited worries of tightening supply of U.S. biofuels compliance credits as also affecting the spread on Wednesday. The credits are used by oil refiners and importers to prove they are complying with government mandates for biofuels use.
* "There's lots of demand (for diesel) coming from Latam and the Caribbean....so would say that's probably impacting it," one trader said.
* Diesel demand in the U.S. and overseas has risen lately, after a mild winter sapped demand for heating oil and punished margins as products went straight into bulging storage tanks.
* On the other hand, there could also be some pressure on gasoil, traders said.
* "I'm sure that there are some imports to EU region (Med and/or NWE) from India (and others) that could be pressuring gasoil," one trader said.