Refiners raid European fuel market as run cuts bite
LONDON, Jan 30 (Reuters) - Two refiners, their European plants running at reduced rates as they seek to defend their profit margins from $90 per barrel oil, lifted European fuel prices as they bid for cargoes on Tuesday, trade sources said.
Interest in diesel from ConocoPhillips (COP.N) and gasoline from Petroplus (PPHN.VX) helped cargo prices rise while prices in the Amsterdam-Rotterdam-Antwerp refining hub, which are more reflective of inland European end-user demand, declined.
The companies are among about dozen refiners worldwide who have taken more than 400,000 barrels per day of distillation capacity off line this month to restore the margin between crude prices and oil product prices, which have lagged crude's rally.
ConocoPhillips was heard bidding for a second day for a cargo of 50ppm diesel for delivery into the northern French port of Le Havre at a premium of March ICE gas oil +$30, up from Tuesday's bid of Mar +$28
Trade sources say Conoco, which has scaled back production at its largest European plant, the 275,000 barrels per day Wilhelmshaven refinery in northern Germany, is not normally a buyer of the grade.
Swiss based independent refiner Petroplus bought a cargo of gasoline for delivery into the Thames from Morgan Stanley at $815 per tonne cif, a dollar higher than Tuesday's cargo talk, while barge prices in ARA fell $1, trade sources said.
Petroplus has cut runs at its Teesside refinery near Newcastle, trade sources say.
Neither refiner has publicly confirmed run cuts. (Reporting by Melissa Akin and Ikuko Kao, editing by Anthony Barker)
