* Fire reportedly under control, flames subsided-witness
* Evaluating situation, 3 injured, output continues-Lukoil
* Entire site may have been evacuated-traders
LONDON, June 9 (Reuters) - Fire broke out at the north site of the 320,000 barrel-per-day ISAB refinery in Italy on Thursday morning, a source at the plant said.
"The situation seems to be under control as the flames have subsided, at least from what we can see from here," said a shipper at the port.
"The fire started...around 1030 (0830 GMT)" he said.
Erg, Italy's no. 2 refiner which runs the plant with Russia's Lukoil (LKOH.MM), was not immediately available for comment, while Lukoil said in an emailed statement that three people had been injured and the situation was being evaluated.
A spokesman for the refinery said that operations were continuing as normal because the fire had affected a waste-treating unit.
Images of thick column of black smoke clouding the sky appeared on a local media websit
"They have to secure the whole site," said a trader, while another reported the local population was being evacuated as well.
A trader said that any disruption affecting the north site would have a bigger impact on light-end products including gasoline, while the south site was more significant for the output of diesel.
"If the south site is affected that would have a bigger impact on diesel... the north should have higher light-end yields than south," said a distillates trader. (Reporting by Jessica Donati; additional reporting by Vladimir Soldatkin; editing by Keiron Henderson)