(Bloomberg) — Rhine barge flows of diesel/gasoil have
increased to 150k tons a week (~160k b/d) from lows of less than 100k tons/week in May, Lars van Wageningen, operations manager at PJK International, says by phone.
* “Demand is quite high due to falling water levels. Quite some diesel is flowing inland,” Wageningen says, adding that flows expected to continue rising into next week.
* READ: Barge rates to Basel surge amid falling water levels.
* Says backwardation in gasoil last 2 months significantly limited demand for shipments up the Rhine, but shift into contango has reversed that trend and is now encouraging stockpiling.
** NOTE: 1M-2M contango stood at $1/ton on Thursday, compared with $4.25 of backwardation a month ago: ICE Futures Europe data.
* Van Wageningen sees inland demand staying strong in coming months ahead as “hardly any winter gasoil stockpiling was done during the period of backwardation”.
* Diesel/gasoil flows surged to 250k tons in March, highest this year, when cold weather prompted a surge in gasoil flows to meet high heating demand.
* Gasoline and component flows are mixed between flows up and down the Rhine but generally about 25k tons per week of gasoline, components are sent to ARA.
* Also says jet fuel flows inland to Germany have increased in recent weeks to about 10k-15k tons per week; inland market mostly served by pipeline.
** NOTE: Figures compiled by PJK are for total Rhine flows; almost all diesel/gasoil Rhine barge flows inland from ARA, while gasoline/components can flow in both directions; naphtha also travels inland while fuel oil is exported to ARA.
Reporter: Bill Lehane
Category: Nieuws
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ARA independent product stocks fall
London, 21 June (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by just over 2pc week-on-week to reach 5.6mn t today.
The decrease in total stocks was driven by a 5pc fall in gasoil inventories, to around 2mn t. Diesel demand from inland Germany is firmer relative to recent weeks, and falling Rhine water levels have prompted a pick-up in gasoil barge traffic on the river in expectation of higher freight prices.
Gasoil cargoes arrived in the ARA area from Finland, Russia and the US at lower levels than those reported in recent weeks. Significant diesel volumes are currently being booked to arrive in Europe from east of Suez. Vessels left the area for Spain and the UK. The premium of second-month Ice gasoil futures to the front-month contract rose on 20 June to its highest in more than three months, at $1/bl.
Fuel oil stocks rose by 3.6pc on the week to a 15-month high of 1.53mn t, having built up in recent weeks amid minimal fuel oil loadings in Rotterdam and steady imports. Stocks should fall next week as two Singapore-bound VLCCs are currently in Rotterdam waiting to load up to 540,000t of fuel oil. The two vessels – Front Prince and Saham – booked by trading firm Vitol and an unnamed charterer, respectively, are the first VLCCs booked on the route to Asia-Pacific since March.
Gasoline stocks fell by 4pc week-on-week as a result of lower import volumes and an increase in exports, particularly to the US. But stock levels remain high and the European gasoline market continues to be oversupplied. Cargoes arrived from Finland, France, Norway and the UK. Vessels left the area for Algeria, the Mideast Gulf, Canada, Estonia, Latin America, west Africa and the US.
Jet fuel stocks declined by 3pc over the past week amid seasonally high demand and no seaborne cargo arrivals. Demand from buyers along the Rhine also firmed. A single cargo left the ARA area, bound for the UK.
Naphtha stocks fell by nearly 5pc to 329,000t. The naphtha market remains in backwardation, but stored volumes are still above the weekly average recorded so far this year, as a result of weak demand from gasoline blenders and general supply length around Europe. Cargoes arrived from Russia and the UK.
Reporter: Thomas Warner
ARA independent product stocks rise
London, 14 June (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub climbed by just over 7pc week-on-week to reach 5.7mn t today, marking a two-month high.
The increase in total stocks was largely a result of a substantial gain in fuel oil inventories, which were up by nearly a third week-on-week. No tankers loaded the product from Rotterdam during the period, keeping northwest Europe oversupplied. But fuel oil exports are likely to rebound as shipping activity has picked up in northwest Europe, with tankers booked to Asia-Pacific and the Mideast Gulf. Two Singapore-bound very large crude carriers (VLCCs) have arrived in Rotterdam to start loading fuel oil later this month.
Diesel stocks rose slightly because of comparatively high imports, particularly from the Baltic Sea. The product also arrived from Poland and the Mideast Gulf, while some diesel was shipped form the ARA region to France, the UK and west Africa. Stocks are under pressure from firm demand, which is likely to tighten the market later this month.
Gasoline stocks increased by 5pc week-on-week. The European gasoline market remains oversupplied as an increase in US demand was offset by weak buying interest from west Africa and Asia-Pacific. Arbitrages on most long-haul export routes were largely unviable, putting pressure on gasoline prices in the ARA region. European gasoline output remained high, contributing to the increase in stocks. Meanwhile, the Mediterranean market remains tight, drawing product from the north.
Jet fuel stocks declined marginally during the past week despite rising exports from the Mideast Gulf, as tankers carrying jet fuel arrived into northwest European ports outside the ARA hub. The region is set to receive at least 290,000t of jet fuel from east of Suez during the week to 16 June, compared with 145,000t a week earlier.
Naphtha stocks fell by nearly 6pc, after having been buoyed the prior week by cargoes arriving from the US Gulf Coast. Demand for light virgin naphtha from European gasoline blenders remains weak and is largely covered by local supplies. Last week, tanker bookings emerging with Asia-Pacific discharge options reached 340,000t, the highest weekly total since late April. The four cargoes are due to load between 20-27 June.
Reporter: Thomas Warner