ARA oil product stocks rise on gasoline, fuel oil

27 June, 2019 (Argus) — Inventories of oil products independently held in the Amsterdam-Rotterdam-Antwerp (ARA) area have risen this week, boosted by gasoline and fuel oil stock builds.

Total oil product stocks in the ARA hub rose in the week to 26 June, according to consultancy Insights Global. The week-on-week increase was driven by rises in fuel oil and gasoline inventories, respectively (see table).

Gasoline refining margins in Europe rose this week, boosted by increased demand for the product as a result of the shutdown of Philadelphia Energy Solutions Philadelphia. Sellers are likely accumulating gasoline in tanks ready for blending before export to the US in the coming weeks.

Rising prices drew in cargoes from Italy, France, Portugal and the UK. Gasoline barge movements rose on the week as market participants organised product for export. But demand from along the Rhine fell on the week. Refineries affected by the Druzhba crude pipeline contamination gradually returned to full production.

Fuel oil inventories rose on the week. Exports were limited with inventories in key market Singapore ample. No VLCCs loaded during the week to yesterday.

Naphtha supplies held in ARA storage fell during the past week. An oversupplied naphtha market in the last month has weighed on prices and inhibited shipments to northwest Europe. No tankers came from key supply areas north Africa and Russia.

Gasoil inventories fell. German demand rose, prompting a week-on-week increase in middle distillate barge traffic on the Rhine.

Jet fuel stocks in ARA fell back slightly from the two-year highs recorded during the last two weeks. High inventories in northwest Europe prompted several jet fuel tankers from the Mideast Gulf to divert to the US and Africa, weighing on shipments to the ARA area. Demand from along the Rhine continued to rise as consumption increased in line with seasonal expectations.

Reporter: Thomas Warner

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