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LONDON: Diesel refining margins in northwest Europe rose by around 2.5pc amid thin trading in the region.

ARA gasoil stocks rose 6.3pc in the week to Thursday on higher imports from India, Russia and the United States but demand up the Rhine river was fairly strong, Dutch consultancy Insights Global said.

US distillate stockpiles, which include diesel and heating oil, rose by 1.4 million barrels, versus expectations for a 1 million barrel drop, EIA data showed.

Diesel demand in northwest Europe remained weak, with little buying activity in ARA, traders said.

Russia's exports of ultra-low sulphur diesel from the Baltic Sea port of Primorsk in July will be up 3pc on a daily basis to 1.053 million tonnes, trading sources familiar with the preliminary loading schedule said on Friday.

Imports from Asia and the Middle East were expected to rise in July to nearly 3 million tonnes as a number of newly-built very large crude carriers (VLCCs) have been booked to ship refined product on their maiden voyages, traders said.

Copyright Reuters, 2019

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