ARA oil product stocks rise on weaker export demand (Week 46 – 2023)
Independently-held oil product stocks at the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose in the week to 15 November, as lower export demand helped drive a build-up of gasoline and fuel oil inventories.
Gasoline stocks at ARA increased, according to the latest data from consultancy Insights Global. Demand for gasoline to be barged up the Rhine river remained firm as a result of unplanned refinery outages in Germany but the arbitrage to ship gasoline to the US was not workable, according to Insights Global.
Fuel oil inventories rose the most in the past week. Arbitrage shipments to Singapore were difficult to work, although some high-sulphur fuel oil cargoes were sent to the US for use in cocker units.
Stocks of other products fell. Gasoil inventories dropped, the lowest level since October 2022 when French refinery workers were on strike. Tight supply in western and southern parts of Germany prompted traders to seek gasoil cargoes from ARA.
Naphtha stocks declined as demand for gasoline blending feedstocks increased. Demand for naphtha from the petrochemical sector remained low, with naphtha at a $127.25/t premium to competing petrochemical feedstock propane on 15 November.
Reporter: Mykyta Hryshchuk