27 February, 2020 (Argus) — The total volume of oil products held independently in storage in the Amsterdam-Rotterdam-Antwerp (ARA) area fell during the week to yesterday, according to the latest data from consultancy Insights Global.

ARA stocks fell in the week to 26 February, down from a week earlier to their lowest since the week to 19 December. The fall resulted from draws on all surveyed products bar fuel oil.

Gasoil inventories fell in the week, the lowest since 17 January 2019. Demand for middle distillates along the river Rhine was reasonably firm, but an uptick in outflows was the primary reason for the stock draw. Tankers left the ARA area for Germany, Norway, the UK, west Africa and France. Widespread industrial action in France has prompted some diesel cargoes to leave the ARA for western France in recent weeks. But the volume rose further this week with an Aframax tanker carrying diesel departing for the Mediterranean port of Lavera. Tankers arrived in the ARA area from Russia, the Baltics and the US.

Gasoline inventories also fell — broadly in line with the level recorded at the same time last year. Outflows to west Africa rose on the week, and tankers also departed for the Mediterranean and Puerto Rico. Several seagoing cargoes remain on the jetty in the ARA as a result of delays to gasoline blending activity in the area. Viable arbitrage economics on the route from northwest Europe to the US Atlantic coast suggest that some of these cargoes will head west across the Atlantic. Tankers arrived from Finland, Russia and the UK.

Naphtha stocks in the ARA fell, falling back after jumping the previous week. Demand from petrochemical end-users along the river Rhine was lower on the week, but with relatively little naphtha arriving in the region, overall stocks were lower. Tankers did arrive from France, Poland and the UK, and the Harald Maersk departed the ARA for the Mediterranean carrying a heavy naphtha cargo.

Jet kerosine inventories dropped on the week to reach fresh 5.5 year lows. End-users are choosing to run down their private inventories rather than buy in a time of falling outright prices and uncertainty over potential aviation restrictions related to the coronavirus outbreak. No tankers arrived in the ARA area and at least one departed for the UK. Fuel oil inventories rose. Tankers arrived from Poland, Russia and the US and departed for the Mediterranean.

Reporter: Thomas Warner