17 October, 2019 (Argus) – Rising gasoline, gasoil and naphtha inventories prompted a week-on-week rise in the total volume of oil products held independently in Amsterdam-Rotterdam-Antwerp (ARA).

The rise in overall inventories came after stock levels reached their lowest since the week to 9 May a week earlier. Gasoline inventories rose by more than those of any other surveyed product, increasing on the week. High liquidity in the northwest European gasoline market continued to cause barge congestion around the key ARA ports, delaying loadings and inhibiting outflows from the area. Tankers did depart for Brazil, Latin America, the US and west Africa, but the total volume leaving the area fell on the week. The quantity of gasoline arriving rose in contrast, with tankers discharging in the area from France, Russia, Spain and the UK.

Gasoil inventories rose. Firm prompt prices helped cause a week-on-week rise in inflows, with tankers arriving from India, Russia, Saudi Arabia and the US. A recent, and likely temporary rise, in Rhine water levels bolstered demand for middle distillates from inland destinations. Seagoing tankers departed the ARA area for Denmark, the UK, west Africa and France. Gasoil demand in France may have been supported by disruption at Total’s Feyzin refinery.

Fuel oil inventories fell on the week to reach their lowest since 9 May. The proportion of the fuel oil held in the ARA area that complies with the IMO 2020 sulphur regulations reached around 70-75pc of the total, continuing a long-term rising trend. Tankers left for the Mideast Gulf, the Mediterranean and west Africa, and arrived from Poland, Russia and the US.

Naphtha inventories fell, with firm demand from petrochemical end-users along the river Rhine prompting a week-on-week rise in inland barge shipments. Demand for naphtha as a gasoline blending component was also firm. No tankers departed the area and cargoes arrived from Finland, France, Norway, Russia and Spain.

Jet fuel stocks in ARA rose. Demand was low in line with seasonal expectations, and one tanker arrived from Saudi Arabia. A single tanker departed for the UK.

Reporter: Thomas Warner