LONDON: Diesel refining margins in northwest Europe were largely stable on Wednesday as strikes in France cut output in Europe, increased the country's import needs and helped shore up what had been an extensive glut of middle distillates.
Four of Total's five French refineries were shut down, and union CGT asked its workers to vote for a rolling strike across the energy sector.
The union's nucelar workers also voted on Wednesday to start a rolling strike at all of France's 19 nuclear power plants as part of nationwide protests aimed at forcing the government to withdraw a disputed planned labour reform.
Because France largely exports gasoline, and consumes diesel, the strikes were having the biggest support to margins for middle distillates.
Germany's primary energy consumption rose 0.6 percent year-on-year in the first quarter of 2016, boosted by cooler weather, economic growth and the leap year effect, industry statistics group AGEB said on Wednesday.
The data showed Germany's oil usage in January-March increased by 3.5 percent as drivers used more gasoline and diesel, and households used more heating oil as well as natural gas.
Still, imports to Europe from the US Gulf Coast and Asia are expected to be plentiful, which could blunt the margin support from the strikes.
GASOIL
There were no 0.1 percent sulphur gasoil barge or cargo trades.
Barges of 50 ppm gasoil traded at discounts of $8 a tonne fob ARA to the June Low Sulphur Gasoil futures, the same level as the previous day.
Glencore and Mabanaft sold to Mabanaft, Total and Belgomine.
June Low Sulphur Gasoil futures were $9 lower at $444.50 a tonne at 1652 GMT.
The June and July contracts were trading in a contango of 75 cents a tonne, 25 cents wider than on Tuesday.
The diesel refining margin was at $10.36 a barrel, down slightly from $10.95 a barrel.
DIESEL
Four diesel barges traded at discounts of $1.50-$2.50 a tonne fob ARA, narrower than Tuesday's discounts of $2.50-$3 a tonne.
No cargoes traded.
JET FUEL
Lufthansa sold to Mabanaft one barge of jet fuel at a $20 a tonne fob Rotterdam premium to July diesel futures.
No cargoes of jet fuel traded.
FUEL OIL
Barges with a sulphur content of 3.5 percent fuel oil traded at $218-$219.50 a tonne fob ARA, down from $219.75-$221.50 a tonne.
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