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LONDON: Benchmark northwest European diesel refining margins fell on Thursday but a sharp drop in regional stocks capped losses on Wednesday in an active trading session.

Gasoil stocks in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub were down 4.4pc to 2.78 million tonnes in the week to Thursday, data from Dutch consultancy Insights Global showed.

Stocks fell on slower imports and firm demand from inlands markets, Insight Global's Lars van Wageningen said.

Traders said the arbitrage from Asia to Europe was shut earlier this month on strong prices in Asia, but the economics for exports on the route have now improved.

US distillate stockpiles, which include diesel and heating oil, rose by 2.6 million barrels last week, versus expectations in a Reuters poll of analysts for a 314,000-barrel increase, Energy Information Administration data showed.

Russia's Rosneft, one of the world's top oil producers and exporters, has notified customers that future tender contracts for oil products will be denominated in euros not dollars, five trading sources told Reuters.

Copyright Reuters, 2019

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