LONDON: Benchmark diesel refining margins in northwest Europe rose on Thursday to their highest since November 2015, boosted by local refinery issues and limited imports.
Gasoil stocks in independent storage at the Amsterdam-Rotterdam-Antwerp (ARA) hub declined by 2.9 percent in the week to Thursday, data from Dutch consultancy PJK International showed.
Stocks stood at around 2.83 million tonnes, having fallen due to strong export demand from the hub to the Mediterranean and West Africa, PJK's Patrick Kulsen said.
Greece's Hellenic Petroleum has purchased three diesel cargoes for July and August delivery to compensate for the operational issues it is facing at the 100,000 Elefsina refinery, traders said.
Two other tenders into Italy and Croatia also closed on July 17, further tightening the Mediterranean market.
The union representing workers at Portugal's Galp Energia has called a six-day strike at the company's two refineries staring on July 26 to demand that Galp resume a collective bargaining agreement.
GASIL
There were no trades of gasoil barges with a 0.1 percent sulphur content.
No cargoes traded.
Belgomine sold to Shell two barges of 50 ppm sulphur gasoil at discounts of $2.50 and $2.75 a tonne fob ARA to August diesel futures, little changed.
August Low Sulphur Gasoil futures were trading $5.50 a tonne higher at $461.50 a tonne at 1548 GMT.
The August contract was trading at a discount flat to the September contract, compared with a 75 cent contango the previous day.
The prompt diesel refining margin was at $12.59 a barrel, up from $11.61 a barrel at the previous close.
DIESEL
Five barges traded, at flat to 75 cents a barrel discount to August diesel futures, weaker than the previous days trades at flat and 25 premium to the same benchmark. BP bought from Licorne, Belgomine and Total.
Vitol sold a cif Thames cargo to BP.
JET FUEL
No barges traded.
No cargoes trades were reported.
FUEL OIL
Barges of fuel oil with a sulphur content of 3.5 percent traded at $285-$286 a tonne fob ARA, slightly higher than levels on Wednesday.
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