LONDON: Benchmark diesel refining margins in northwest Europe held steady on Monday at around $9.50 a barrel as lower imports from the US Gulf Coast and regional maintenance tightened supplies.
Demand in northern Europe remained weak. Lower water levels along the Rhine River limited barge activity while high inland storage levels further dampened buying, traders said.
The arbitrage from the US Gulf Coast remained closed for most traders.
Supplies from Asia and the Middle East were nevertheless expected to reach 2 million tonnes in September.
Asian gasoil distillates refining margins are likely to remain bearish for the next few months on larger than usual exports from China, oil analysts and traders said on Monday.
Colonial Pipeline Co said on Saturday it resumed repairing a leak on a key US gasoline line on Friday afternoon, but pump prices continued to rise in the southeast as several states took emergency action to get fuel to filling stations more easily.
Demand in North Africa supported the gasoil market in the Mediterranean. Tenders from Egypt and Algeria were set to close later this week.
Saudi Aramco has scheduled maintenance at its refinery in Yanbu and its largest refinery in Ras Tanura in November and December, sources said.
Yanbu Aramco Sinopec Refining Co (Yasref), is expected to shut its 400,000 barrel-per-day refinery complex for 10-15 days of maintenance in November.
Saudi Aramco plans to carry out maintenance at the Ras Tanura refinery in December for 20-25 days, which may involve only the 325,000-bpd crude distillation unit (CDU), the sources added.
GASOIL
Vitol sold to BP and AOT four barges of 0.1 percent sulphur content gasoil at discounts of $7 and $8 a tonne fob ARA to the October Low Sulphur Gasoil futures.
No cargoes traded.
Licorne sold a barge of 50 ppm diesel to BP at a discount of $7 a tonne to the October diesel futures.
October Low-Sulphur Gasoil futures traded $5.25 a tonne higher at $417.75 a tonne at 1538 GMT.
The October contract traded at a discount of $2.25 a tonne to the November contract, unchanged.
Benchmark diesel refining margins stood at $9.54 a barrel, up slightly from Friday.
DIESEL
Eleven barges of 10 ppm diesel traded at discounts of $3-$4 a tonne against October diesel futures, compared with discounts of $2.50-$4.50 a tonne on Friday. Glencore and Vitol sold to BP, Rolympus and Shell.
Vitol sold to BP two cargoes at premiums of $4 and $4.50 a tonne cif Le Havre above the October diesel futures.
JET FUEL
Litasco and Shell sold a barge each to Trafigura at premiums of $18 and $22 a tonne to the October diesel futures.
Respectively, compared with premiums of $17 a tonne on Friday.
Vitol sold to BP two cargoes at $22 and $25 a tonne cif Le Havre and Rotterdam above the October diesel futures, respectively.
FUEL OIL
Barges of 3.5 percent sulphur content fuel oil traded at $237.50-$238.25 a tonne fob ARA.
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