European Diesel Jumps as Fire at Pernis Refinery Cuts Supply

Pump prices for diesel could increase, Mizuho’s Yawger says
Incident could spur increase in shipments from Asian refiners

The fire at Royal Dutch Shell Plc’s Pernis site led to the halt of most units late Saturday and the company doesn’t expect any of the units to restart Monday.
Photographer: Chris Ratcliffe/Bloomberg

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By Alex Longley and Conor Molumby

July 31, 2017 at 11:12 AM UTC

Updated on

July 31, 2017 at 5:12 PM UTC

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European diesel surged after a fire at the region’s biggest refinery on Saturday left traders scrambling for supply in the area’s main oil-trading hub and prompting speculation that retail prices could rise.

The fire at Royal Dutch Shell Plc’s Pernis site led to the halt of most units late Saturday and the company doesn’t expect any of the units to restart Monday. PVM Oil Associates said traders were “panic buying” gasoil contracts early Monday while a Bloomberg survey showed the disruption could spur increased flows of diesel from Asia.