ARA Oil Product Stocks Down (Week 51)
Oil products Blendstocks Diesel-heating oil-gasoil Gasoline Jet fuel-kerosine Naphtha Fundamentals Inventories
Independently-held oil product stocks at the Amsterdam-Rotterdam-Antwerp (ARA) trading hub dipped in the week to 20 December, according to data from consultancy Insights Global.
Jet fuel stocks shed on the week, a mix of rising demand in the run-up to the Christmas holidays and fewer cargoes arriving in ARA via the Red Sea due to the disruption to shipping stemming from attacks by Yemen’s Houthi rebels in and around the key waterway. Any tightness in jet fuel supply in ARA is unlikely to be prolonged, according to Insights Global.
Gasoline inventories in ARA fell on the week, driven by less gasoline blending, not because of higher demand, Insights Global said. As gasoline demand inland and for export dwindles, blending activity has decreased.
Gasoil stocks slipped. Market participants suggest higher carbon taxes in Germany next year new year could support buying in the last few weeks of 2023. But Insights Global expects high water levels on the Rhine to constrain shipments from ARA inland.
Higher demand from the petrochemical sector underpinned draws on naphtha stocks in ARA, which dropped in the week to 20 December. Fuel oil inventories bucked the trend, growing, as export economics to Singapore become less workable.
By Anya Fielding