Independently-held oil product stocks at the Amsterdam-Rotterdam-Antwerp (ARA) oil trading hub edged up in the week to 7 June, according to consultancy Insights Global. The rise in gasoil inventories drove in the increase, settling and marking their highest level since 17 May.

Gasoil stocks at ARA built on the week owing to reduced demand for product up the Rhine, according to Insights Global, with demand hindered by high freight rates.

Barge rates have risen as water levels on the Rhine have dropped, restricting volumes able to move along the river. Cargoes carrying gasoil discharged at the hub from Saudi Arabia, the US, Greece and India while product departed for France, Germany and the UK.

Meanwhile gasoline inventories edged down, shedding.

Stocks of the lighter road fuel likely fell as demand for gasoline up the Rhine to meet inland German consumers remained relatively firm, especially with delays to the restarting of some refineries following maintenance.

But gasoline stocks shrunk marginally although the beginning of the US summer driving season traditionally pulls European gasoline across the Atlantic. Higher freight rates likely hindered export opportunities to the US in the week to 7 June, making arbitrage economics less workable.

Vessels carrying gasoline departed ARA for the US, west Africa and northwest Europe while product arrived from Denmark, Spain and the UK.

Naphtha stocks at the hub rose.

Product inventories grew as propane remains a more economic feedstock for the petrochemical sector, Insights Global said. Gasoline blending activity is also slow at ARA, according to Insights Global, allowing naphtha supply to rise.

Naphtha arrived at the hub from Algeria, northwest Europe and Israel, while no cargoes departed.

Reporter: Georgina McCartney