Independently-held oil product stocks at the Amsterdam-Rotterdam-Antwerp (ARA) hub inched lower in the week to 5 July, according to consultancy Insights Global.

Gasoline stocks made gains on the week, growing.

Blending activity was higher on the week, according to Insights Global, as more blending components arrived in the region. Demand pull into west Africa appeared stronger on the week, after the Nigerian government cut its gasoline subsidies, affecting gasoline demand in the country.

Vessels unloaded gasoline at the hub from Finland, Germany, Poland, Saudi Arabia, Spain, Sweden and the UK and left for Canada, France the Mediterranean and Norway.

Naphtha stocks declined on the week, stocks appeared to be lower on the year.

Market participants noted that there may be tighter supply in the region as a result of higher blending demand and lower import volumes into the region. Naphtha cargoes arrived from Algeria, Norway, Portugal, Saudi Arabia and Spain, but none left.

Gasoil inventories fell the most in outright terms, the lowest since December 2022. More cargoes were spotted going to the west African region, while demand in northwest Europe appeared slower, according to Insights Global.

Supply tightness may intensify in the coming sessions following a fire on 5 July at the Neustadt section of the Bayernoil complex in southern Germany. Market participants expect short-term shortages of middle distillates and less spot market activity.

At the heavier end of the barrel, fuel oil inventories were down.

The LSFO arbitrage to Singapore remained open on the week with at least one vessel leaving Europe to go east, according to Insights Global. Fuel oil arrived from Denmark, Chile, Germany, Poland and the UK, and left for Canada, Denmark, France, Singapore and the UK.

Reporter: Mykyta Hryshchuk