Independent ARA Oil Product Stocks Hit Two-Month High (week 36 – 2021)
Independently-held oil product stocks in the Amsterdam-Rotterdam-Antwerp (ARA) hub rose over the past week to reach their highest level since mid-July, according to consultancy Insights Global.
Total refined product inventories increased during the week to 8 September on the back of a significant build in gasoline and gasoil stocks. Gasoline inventories rose, having hit a five-year low a week earlier.
The increase was driven by a sharp drop in exports to the US, where demand for European cargoes has been disrupted by flooding on the US Atlantic coast and a tailing off of demand for summer-grade gasoline.
Barge traffic of gasoline blending components rose on the week, suggesting that production of winter-grade cargoes is ramping up ahead of the seasonal transition later this month.
Tankers carrying gasoline did depart ARA for the US, albeit in fewer numbers than recent weeks. Gasoline cargoes also left for west Africa, Colombia, the Mediterranean and Canada, while cargoes of finished-grade gasoline and components arrived in ARA from Finland, the UK, the Latvia, Russia and Spain.
Gasoil stocks gained on the week. Diesel flows up the river Rhine from the ARA area into Germany fell to a five-week low, while diesel tanker inflows to ARA rose. Cargoes arrived from Russia, Saudi Arabia and the US, while tankers carrying diesel departed ARA for France, the Mediterranean and the UK.
Barge shipments of jet fuel from ARA to inland airports rose over the past week, reaching the highest level since June 2019. This was likely supported by restocking at airports following the peak summer demand season. Jet fuel stocks fell as a result, despite the arrival of at least one jet cargo from Russia.
Naphtha stocks ticked up by 1pc, with inflows from Algeria, Norway, Russia and the US more than offsetting the departure of at least one naphtha cargo for Brazil. Flows of naphtha from ARA up the river Rhine to inland petrochemical facilities slowed on the week, but demand from gasoline blenders in the ARA area was robust.
Fuel oil stocks fell to reach a six-week low. Cargoes carrying fuel oil departed ARA for the Caribbean and the Mediterranean, and arrived from Denmark, France, Germany, Russia and the UK.
Reporter: Thomas Warner