Diesel exports 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 voyage, according to traders.

The rise in imports, coupled with weak demand in the region, have weighed on diesel refining margins.

A crude unit (topping 3) at Italy's 200,000 barrel per day Milazzo oil refinery has been shut down since June 21, a spokesman for the plant said.

The alkylation unit involved in a massive fire on Friday at Philadelphia Energy Solutions Inc's oil refinery has been completely destroyed, which will hamper the supply of gasoline from the US East Coast's largest refinery, sources familiar with the matter said on Sunday.

Gasoil stocks in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell by 6pc in the week to Thursday, data from Dutch consultancy Insights Global showed.