Diesel Reverses Decline as Refinery Strike Concern Boosts Gasoil
Ultra-low-sulfur diesel reversed a loss as European gasoil strengthened after workers at Scotland’s sole oil refinery voted to strike.
Futures rose after falling as much as 0.9 percent. Ineos Group Ltd’s Grangemouth plant can process 210,000 barrels a day of crude, according to data compiled by Bloomberg. Unite the Union said in am e-mailed statement that 81 percent of those who voted supported the action. Gasoil for October delivery on ICE Futures Europe exchange gained 0.6 percent.
“Thirty percent of that refinery’s output is distillate, so this will have a huge impact on the distillate market,” said Amrita Sen, chief oil market strategist at Energy Aspects Ltd., a research company in London.
Ultra-low-sulfur diesel for October delivery rose 0.88 cent, or 0.3 percent, to $3.0125 a gallon at 11:33 a.m. on the New Mercantile Exchange, after sinking as low as $2.978. Trading volume was 1.9 percent below the 100-day average.
Gasoline for October delivery rose 0.22 cent to $2.7072 a gallon on trading volume that was 23 percent below the 100-day average.
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