LONDON: Benchmark European diesel refining margins extended their gains on Monday, as strikes at French refineries widened, raising concerns of supply disruptions.
France's hardline CGT and FO unions launched a 24-hour strike at the Fos-Lavera oil terminals and blockaded a fuel depot in the southern port city of Marseille on Monday as they toughened their stance against labour market reforms.
Total, which operates five of the eight refineries in France, has started the process of shutting down three - at Normandy, Donges and Feyzin - while its Grandpuits refinery was running at minimum output.
Total's 270,000 tonne diesel cargo on board the tanker Alice has discharged at Rotterdam, according to traders.
Egypt's Midor refinery is offering to sell a 30,000-tonne jet cargo loading on June 20-22 at Dekheila, according to a tender document.
The tender closes on May 25 at 10:00 GMT.
GASOIL
There were no 0.1 percent sulphur gasoil barge trades.
No cargoes traded.
Barges of 50 ppm gasoil traded at discounts of $8 a tonne fob ARA to the June Low-Sulphur Gasoil futures contract, compared with a $7 a tonne discount on Friday.
June Low Sulphur Gasoil futures were down $4.50 at $436.25 a tonne at 1623 GMT.
The June and July contracts were trading in a contango of $1.25 a tonne, 50 cents wider.
The diesel refining margin was at $10.74 a barrel, up from $10.43.
DIESEL
Fourteen barges of diesel traded at discounts of $2-$3 a tonne to the June diesel contract, compared with $2.50-$3.25 discounts on Friday.
Glencore sold a cargo to Total on a Platts pricing basis.
JET FUEL
Four barges traded at premiums of $17 to $19 a tonne to the June low-sulphur gasoil contract.
Vitol sold to Shell at cargo at a $22-a-tonne premium to the June contract.
FUEL OIL
Barges with a sulphur content of 3.5 percent fuel oil traded at $210 a tonne fob ARA, down marginally from $211-$213 on Friday.
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