November 26, 2020 — Total oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose on the week, supported by builds in gasoil and fuel oil, according to data from consultancy Insights Global.

Gasoil inventories rose as a result of high inflows and the sixth consecutive week on week fall in gasoil flows from the ARA area to inland destinations along the river Rhine.

Consumption in the northwest European hinterland is under heavy pressure from Covid-19 restrictions, and inventories at inland terminals are also high.

Tankers arrived in the ARA area from Saudi Arabia and Russia, and the volume departing for the US fell on the week. Fuel oil stocks rose on the week to reach five-week highs. Cargoes arrived from the Caribbean, Denmark, Latvia, Russia and the UK. A single tanker departed for Saudi Arabia and several small vessels left for the
Mediterranean carrying bunker fuel cargoes.

Stocks of all other surveyed products fell. Gasoline stocks were lower, with a rise in outflows to west Africa. Dwindling interest from the well-supplied US Atlantic coast market reduced westbound transatlantic flows.

Low demand within Europe continued to weigh heavily on blending activity, keeping the quantity of gasoline blending components moving around the ARA area on barges low.

Naphtha stocks fell heavily, reaching four-week lows. Some limited demand emerged from northwest European gasoline blenders, but the petrochemical sector continued to absorb the lion’s share of available naphtha cargoes. Small cargoes arrived in the ARA area from Norway, Portugal, the UK and Russia.

Jet fuel stocks fell for a third consecutive week to reach seven-week lows, with low inflows. And regional output is being constrained by a combination of refinery run cuts, economic shutdowns, maintenance work and refiners choosing to maximise gasoil production.

Reporter: Thomas Warner