LONDON: The spread between US heating oil futures and ICE Gasoil futures fell to its narrowest point since June after renewable fuel credits, known as RINs, fell to a low of 76 cents each on Wednesday.
The spread narrowed to $0.0745, the smallest difference since June 30.
Hellenic Petroleum said it will shut its 93,000 barrel per day Thessaloniki refinery in Greece for one month of maintenance in November.
Distillate stockpiles, which include diesel and heating oil, fell by 2 million barrels, versus expectations for an increase of 513,000 barrels, according to US government data.
The US Gulf Coast saw the biggest distillates draw down since 2013.
GASOIL
No barges of 0.1 percent sulphur content gasoil traded.
Barges of 50ppm sulphur gasoil traded at a discount of $2.50 a tonne fob ARA to the August Low Sulphur Gasoil futures, on par with Tuesday's trade.
BP bought a cargo from Repsol at a $2.50 a tonne discount to August gasoil futures for Aug. 24-28 delivery.
August Low Sulphur Gasoil futures were trading $6 a tonne lower at $380.75 a tonne at 1604 GMT.
The August contract traded in a contango of $6 a tonne to the September contract, 25 cents wider.
The diesel refining margin was at around $8.65 a barrel, up from $8.28 a barrel.
DIESEL
Barges of 10 ppm diesel traded at discounts of $1-$1.50 a tonne fob ARA to August diesel futures, on par with Tuesday's session.
No cargoes traded.
JET FUEL
Shell bought a barge from KLM at a $16 premium a tonne fob FARAG September diesel futures, the same level as Tuesday's deal.
No cargoes traded.
FUEL OIL
Barges with a sulphur content of 3.5 percent fuel oil traded at $208-$211 a tonne fob ARA, compared with $210.50-$212.75 a tonne in the previous session.
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