ARA oil product stocks ease from two-month high (week 26 – 2021)
July 1 — Independently-held inventories of oil products in the Amsterdam-Rotterdam-Antwerp (ARA) trading and storage hub fell over the past week, according to the latest data from consultancy Insights Global.
Total stocks were recorded on 30 June, down from a two-month high the previous week but still comfortably below the year-to-date.
The week-on-week drop came from stock draws for all products except gasoline, which rose. An increase in gasoline blending demand, as traders look to take advantage of firmer margins, has likely translated into an accumulation of product in storage tanks.
Gasoline arrived into ARA storage from France, Portugal, Russia, the UK and the Mediterranean over the past week, while supplies departed ARA for Canada, Mexico, Puerto Rico, the US and west Africa.
Firming gasoline demand coincides with a draw in ARA naphtha inventories, which fell during the week to 30 June. Most naphtha demand appeared to be coming from the gasoline blending pool, as demand from the petrochemical sector is being dampened by maintenance at inland plants. Naphtha was delivered into ARA storage from France, Russia and the US over the past week, while no outflows were recorded.
Gasoil stocks dropped , with weak demand along the Rhine prompting exports to other regions. Gasoil left ARA storage for France, Norway and the UK over the last week, as well as further afield destinations including Canada and west Africa. Diesel demand in Europe is gradually recovering from the Covid-19 pandemic, but the market remains under pressure from rising supply as refineries return from maintenance and other downtime.
Jet fuel inventories in ARA decreased on the week, as some supplies were deposited into tanks from the UAE, and supply departed the region for the UK. The prospect of firmer international travel suffered a fresh blow this week as a handful of European countries looked to tighten restrictions on arrivals from the UK over concerns about the spread of the Delta variant of Covid-19.
ARA fuel oil inventories fell, driven by the export of one cargo to Singapore. The Suezmax tanker Orpheas loaded sulphur fuel oil in Denmark on 21 June before topping up in Rotterdam on 27 June for an onward voyage to Singapore — the world’s largest bunkering hub — according to Vortexa. Fixture lists indicate that Shell booked the vessel. Fuel oil also departed ARA storage for the Mediterranean and the US over the past week, while inflows were recorded from France, Germany, Russia and the UK.
Reporter: Thomas Warner