LONDON: Diesel refining margins in northwest Europe firmed slightly on Thursday due to outages in the United States and declines in ARA stocks.
BP will cut production this weekend by at least 50 percent on the large crude distillation unit for repairs at its 413,500 barrel per day Whiting, Indiana refinery, sources familiar with plant operations said on Thursday.
Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp oil hub dropped by 6.5 percent in the week to Thursday, Dutch consultancy PJK International said.
Colonial Pipeline Co, the largest refined products system in the United States, on Wednesday increased its estimate of a gasoline leak in Alabama by about six times, but maintained it would restart its main gasoline and distillates line completely by the weekend.
Authorities in a port controlled by Yemen's Houthi movement have seized two oil tankers from international traders in a payment dispute, according to the ships' owners, an incident which could make it more difficult for the country to import vital supplies.
GASOIL
One barge of 0.1 percent sulphur content gasoil traded at a $8 a tonne discount to October Low-Sulphur Gasoil futures. Glencore sold to BP. No cargoes traded.
No barges of 50ppm gasoil traded.
October Low-Sulphur Gasoil futures traded $5.25 a tonne higher at $414.25 a tonne at 1545 GMT. The October contract traded at a discount of $2.50 a tonne to the November contract, 50 cents a tonne narrower.
Benchmark diesel refining margins stood at $9.36 a barrel, up slightly from $9 a barrel.
DIESEL
Eleven 10 ppm diesel barges traded at discounts of $3.00-$4.00 a tonne against October diesel futures. Glencore and Vitol sold most of them to BP. Gunvor sold one to BP and Total bought another from Glencore.
No cargoes traded.
JET FUEL
No barges traded. Bids and offers came in at the same level of $18 a tonne premiums to the October diesel futures contract but for different dates.
Vitol sold a cargo to BP at a $23 a tonne premium to the October contract, down a $1 from Wednesday's deal.
FUEL OIL
Barges of 3.5 percent sulphur content fuel oil traded at $236.50-$238 a tonne fob ARA, up from $234.50-$235 a tonne fob ARA on Wednesday.
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