LONDON: Diesel margins held steady on Wednesday as the return of some refineries from maintenance counterbalanced restocking demand in France following the a multi-week strike at Total's refineries.
ARA gasoil stocks remained relatively constant last week, up slightly to 5.859 million tonnes, a 28,175 tonne increase, according to a weekly report from industry monitor Genscape.
Distillate stockpiles in the United States, which include diesel and heating oil, rose by 786,000 barrels, versus expectations for a 249,000-barrel drop, the Energy Information Administration said on Wednesday.
Diesel demand in the Mediterranean was being supported by demand in Morocco, one regional source said.
Demand emerged earlier this week from Algeria, with state-owned Sonatrach issuing a tender to buy 300,000 tonnes of gasoil for delivery in July and August.
GASOIL
Barges of 0.1 percent sulphur gasoil traded at discounts of $4-$5 a tonne fob ARA to the July Low Sulphur Gasoil futures , stronger than Tuesday's discount of $7 a tonne.
No cargoes traded.
Barges of 50 ppm gasoil traded at discounts of $4-$7.50 a tonne fob ARA to July futures, compared with $6-$7.50 a tonne on Tuesday.
The July Low Sulphur Gasoil futures traded $2 lower at $441.50 a tonne at 1607 GMT.
The July contract traded in a contango of $2.75 a tonne to the August contract, 25 cents wider. The diesel refining margin was unchanged at $10.18 a barrel.
DIESEL
Diesel barges traded at discounts of $1.50-$2.75 a tonne fob ARA to July diesel futures, compared with $1.50-$3 a tonne fob ARA the previous day. * Gunvor, Glencore, BP sold to Vitol, BP and Belgomine.
JET FUEL
No barges traded.
Vitol sold two cargoes to BP at a premium of $18 a tonne above July futures cif Rotterdam.
FUEL OIL
Barges with a sulphur content of 3.5 percent fuel oil traded at $215.50-$219 a tonne fob ARA, a wider range than Tuesday at $215.75-$216.50 a tonne.
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