LONDON: Diesel refining margins in northwest Europe touched $11 a barrel on Thursday, nearing late May's six-month highs, as inventories in ARA and the United States fell and as two-week long strikes in France slashed European supplies.
Gasoil inventories held in independent storage in the Amsterdam-Rotterdam-Antwerp hub fell by around 2 percent in the week to Thursday, according to consultancy PJK International.
US distillate weekly inventories, which include diesel and heating oil, fell by 1.3 million barrels, versus expectations for a decline of 891,000 barrels, the US Energy Information Administration said on Thursday.
French nuclear power output fell by over 2,400 megawatts (MW) on Thursday, causing a few local blackouts, the CGT union said, after workers at utility EDF joined a nationwide rolling strike against a government plan to reform labour laws.
Total said in a statement more than 1,000 trucks were being used to deliver around 400,000 barrels of fuel from depots, down from 1,100 on Wednesday, but still nearly three times the normal number.
All of Total's 9 fuel depots in France are operating.
Total's La Mede refinery was operating at 80 percent of capacity, while its Normandy, Grandpuits, Donges and Feyzin remained shut, it said.
GASOIL
There were no 0.1 percent sulphur gasoil barge or cargo trades.
Around 7,000 tonnes of 50 ppm gasoil traded at discounts of $7.50-$8 a tonne fob ARA to the June Low Sulphur Gasoil futures contract, compared with a discount of $8 a tonne the previous day.
June Low Sulphur Gasoil futures were $9 a tonne higher at $452.75 at 1606 GMT.
The June and July contracts were trading in a contango of 25 cents a tonne, 50 cents narrower than on Wednesday.
The diesel refining margin was at $10.91 a barrel, up from $10.36 a barrel the previous day.
DIESEL
Five diesel barges traded at discounts of $1.50-$3 a tonne to the June diesel contract fob ARA, compared with discounts of $1.50-$2.50 a tonne the previous day.
Glencore sold two cargoes to Vitol. JET FUEL * No barges of jet fuel traded.
CCI sold a cargo to Shell at a $26-a-tonne premium to the June diesel contract.
FUEL OIL
Barges with a sulphur content of 3.5 percent fuel oil traded at $217-$220.25 a tonne fob ARA, compared with $218-$219.50 a tonne the previous day.
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