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UPDATE 1-Total cuts Gonfreville refinery run 10 pct-sources

Wed Nov 19, 2008 10:02am EST

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PARIS/LONDON, Nov 19 (Reuters) - French oil major Total (TOTF.PA) has reduced runs at its Gonfreville refinery by 10 percent, industry and trade sources said on Wednesday.

The sources did not specify when the run was reduced.

The sources said the run cut was meant to reduce gasoline due to weak import demand from the United States.

One industry source also said the refinery in France has shut some units related to making gasoline.

The Gonfreville refinery, a complex plant, has the capacity to process about 328,000 barrels of crude oil per day.

A Total spokesman declined to confirm the run cut, saying "it is business as usual."

The spokesman was unable to confirm at what capacity the plant is currently operating.

Some oil traders said the run cut at a complex refinery came as surprise because it is normally only simple plants that reduces operation. They also said weak gasoline demand was biting into oil refiners' profits.

Gasoline's value to crude oil has remained negative and many refiners are seeing losses by making the motor fuel, due to weakening demand amid global ecnomic slowdown.

The futures and derivatives markets suggest gasoline may remain cheaper than crude oil for at least several months. Gasoline, traditionally, is the more profitable product.

Other refiners, which have reduced runs due to weak margins, include Petroplus simple plant at Teesside in the UK. [REF/OUT] (Reporting by Muriel Boselli in Paris, and David Sheppard and Ikuko Kao in London; editing by Karen Foster)



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