Author: Greta

August 13, 2020 – Total oil products stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) area rose on the week, a second consecutive week of gains, according to consultancy Insights Global.

The week on week stockbuild was driven by a rise in jet fuel and gasoline stocks to fresh all-time highs, while naphtha stocks also rose. Refining margins in northwest Europe have fallen back as markets have become oversupplied as a result of increasing refinery utilisation and persistently high stock levels.

Jet fuel inventories rose to their highest on record since at least January 2011 this week. Jet fuel was delivered to ARA from the UAE this week, while cargo outflows were recorded to the UK. Demand is slowly rising as air travel resumes — Insights Global recorded the first jet barge heading up the Rhine from ARA in several months this week — but proved insufficient to offset import levels this week. Jet values have come under pressure in northwest Europe in recent sessions in response to rising Covid-19 infections across Europe and fresh travel restrictions.

And gasoline stocks also hit an all-time high this week, on the week. Stock levels increased as a result of weakening export demand along key arbitrage routes to North America and west Africa, while inflows into the region were high as a result of oversupply on the continent prompting producers to ship excess volumes into storage tanks. Gasoline was delivered to ARA tanks from Finland, Sweden, the UK, France and the Mediterranean this week, while exports were recorded to Canada, the US, and west Africa, albeit in limited volumes.

Naphtha stocks gained on the week, their highest since June. Inventories probably increased as a result of waning demand for the product in Europe for both gasoline blending and also from the petrochemical sector. Naphtha was shipped into the ARA region from Algeria, Russia and Spain this week, and was removed from tank for a long-haul voyage to Brazil.

Fuel oil inventories fell to their lowest since March, marking a decrease of 10pc on the week. No fuel oil was imported into ARA storage from Russia — the leading exporter of the product — as the region is increasingly bypassed by direct shipments from Baltic Sea terminals to the US, where coking demand has provided an outlet for high-sulphur fuel oil (HSFO) this year following the IMO 2020 marine fuel sulphur cap. Fuel oil arrived to ARA storage from Italy, Poland and the UK, and left the region for the Mediterranean and west Africa.

And gasoil stocks dipped this week, as supply arrived from the US and exited for the UK. Barge activity was said to have been particularly thin over the past week, and the small stockdraw came as a result of minimal imports.

Reporter: Robert Harvey

June 18, 2020 — Total oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell on the week after reaching their highest since at least 2003 a week earlier, according to consultancy Insights Global.

Stocks reached fresh record highs in each of the three previous weeks, supported by contango in the forward curves of the underlying crude futures and Ice gasoil contracts owing to the massive reduction in demand caused by the Covid-19 pandemic and related lockdowns. But stocks fell during the week to yesterday, amid rising demand for oil products within northwest Europe and in export regions.

Gasoline inventories fell. The amount of cargo movements, both on barges and on seagoing tankers, eased after an exceptionally frenetic week across the ARA area a week earlier. Exports to the US remained broadly stable on the week at a high level, but no tankers departed for China. Tankers also departed for Canada, the Mediterranean, Singapore and west Africa. Cargoes arrived from Finland, France and Russia. Congestion in the regional barge market eased, particularly around Amsterdam.

Fuel oil stocks fell heavily in the week to yesterday. Flows of high-sulphur fuel oil to the Middle East for power generation continued, with two Aframax tankers departing for Saudi Arabia during the reporting period. Tankers also departed for the Mediterranean. No fresh fixtures emerged on the arbitrage route to Singapore, and cargoes arrived in the ARA from the UK and Russia.

ARA gasoil stocks rose on the week, reaching fresh ten-month highs. At least one tanker carrying gasoil discharged in the ARA after having waited in the North Sea since 8 May. Steep contango across the product markets prompted the booking of tankers to store volume offshore, but total volumes are easing as end-user demand rises. High inventories in Germany weighed on barge flows from the ARA to destinations up the river Rhine, supporting stock levels downriver. Tankers departed for France and the UK, and arrived from Russia, Saudi Arabia and Singapore.

Jet kerosine inventories fell, and as with gasoil at least one tanker discharged following a period of use as floating storage. Tankers departed for the UK, and local demand rose as European civil aviation begins to restart following the outbreak of the Covid-19 pandemic.

Naphtha inventories fell. No tankers departed the area, but local demand for the product from gasoline blenders was firm during the reporting period, and several petrochemical end-users bought cargoes. Tankers arrived from Latvia, Russia and the UK.

Reporter: Thomas Warner

Total oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose on the week, the highest since at least 2003, according to consultancy Insights Global.

Stocks had already been at their highest since at least 2003 the previous week, after inventories of all surveyed products except gasoline had risen in the week to 27 May.

The week on week rise was driven by rising inventories of gasoline, as well as fuel oil and gasoil, while naphtha and jet kerosine inventories dropped lower.

Independently-held gasoline storage in ARA hit a fresh high since at least 2003 this week. Stocks rose as tankers arrived at ARA jetties from Estonia, Russia, France, Spain and the UK. Higher imports into ARA tanks could be a function of higher export demand, as sellers look to accrue supplies to assemble larger cargoes for long-haul voyages across the Atlantic or to Asia-Pacific. Gasoline was exported out of the ARA area to the US and Mexico, as well as the Mediterranean, over the past week. And more long-haul exports could follow in the coming week, with as many as 19 seagoing vessels spotted at jetties in the area, according to Insights Global.

ARA gasoil stocks rose, the highest since October 2019. Weaker inland demand prompted a drop in barge flows up the Rhine, according to Insights Global, while weakening refining margins could also be resulting in rising stocks amid a slowdown in demand. Inflows into the region remain high, with tankers arriving in ARA from Russia, India and the Middle East. No gasoil exports were recorded by Insights Global in the past week.

Fuel oil stocks rose in the week to 3 June, the joint highest on record. But stocks could decrease over the next week as long-haul export shipments materialise. The Torm Mathilde departed from Rotterdam with around 90,000t of fuel oil on 4 June for an onward voyage to Saudi Arabia, according to data from oil analytics firm Vortexa. Renewed Opec and non-Opec production cuts could result in higher flows of high-sulphur fuel oil to the Middle East for power generation as a replacement for crude oil. Suezmax tankers were also said to have been booked to load fuel oil from ARA for onward voyages to Singapore.

Jet kerosine inventories dipped as supplies were delivered to ARA storage from the UAE, while outflows were recorded to the UK. Jet fuel inventories could be decreasing as demand picks up in line with the gradual recovery of the aviation sector.

Naphtha stocks fell. Inland demand from the petrochemical sector remained weak, while stock levels could be decreasing as naphtha is taken out of storage tanks for processing at regional refineries.

Report: Robert Harvey

May 28, 2020 — The amount of oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) area rose during the past week to reac the highest level since at least 2003, according to consultancy Insights Global.

Inventories of almost all surveyed products rose on the week, supported by the crude market’s steep contango structure, where prompt prices are at a discount to forward values. The tank utilisation rate in ARA was between 70-75pc, but the 25-30pc not in direct use was unavailable to the market. Available commercial tank space in the area appears very limited until well into 2021.

Gasoline stocks bucked the trend, falling during the past week, driven by a rise in local demand and a week-on-week increase in arbitrage flows to the US and west Africa. Demand for gasoline in the US is rising ahead of the summer driving season. Gasoline cargoes also departed ARA for Puerto Rico, and arrived in the area from France, Italy, Spain and the UK.

Stocks of all other products rose, with naphtha and jet fuel both reaching their highest level since at least 2003. Jet fuel barge movements around the ARA area ticked up from a very low base, but demand from inland destinations along the river Rhine remained virtually non-existant.

Several European airlines have announced plans to increase passenger flights next month as travel restrictions brought in to tackle the Covid-19 pandemic are eased. But a global surplus of jet fuel means that market participants are still looking for floating storage for the product. Tankers carrying jet fuel arrived in the ARA area from the Mideast Gulf, South Korea and from Augusta in Italy during the past week, while one tanker departed the region for the UK.

Naphtha inventories rose on the week. Demand from petrochemical plants along the river Rhine was low, with prices of rival feedstocks becoming more competitive. And high gasoline inventories meant that there was little interest from gasoline blenders either.

Gasoil stocks rose on the week, the highest level since October last year, as traders looked to take advantage of a contango structure in Ice gasoil futures by putting product into storage. Gasoil flows up the Rhine to inland markets reached their highest weekly level since at least 2017 a week earlier, but fell back during the past week as stocks inland also approached storage capacity. Gasoil tankers departed ARA for the UK and west Africa, and arrived from the Mediterranean, Poland, Russia and Saudi Arabia.

Fuel oil stocks rose slightly. Demand in the ARA area for bunker fuels remained stable at a very low level, weighed down by the impact of Covid-19 on commercial shipping. Fuel oil cargoes arrived in ARA from the Black Sea, France, Germany and Russia, and departed for the Mediterranean and Port Said for orders.

Reporter: Thomas Warner

May 22, 2020 – The volume of oil products held independently in storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and trading hub rose the past week, according to consultancy Insights Global.

Inventories of almost all surveyed products rose on the week to yesterday, with only fuel oil inventories down.

Fuel oil stocks on the week, amid a rise in export interest for the product in northwest Europe. The Suezmax tanker Leonid Loza departed the ARA region on 17 May with fuel oil, which it could deliver to Singapore, according to data from oil analytics firm Vortexa. And the very large crude carrier (VLCC) Amyntas also loaded from Rotterdam on 17 May, but is yet to declare its destination. Fuel oil cargoes also departed ARA for the Caribbean, where it could go into storage, potentially for local bunkering. Fuel oil was also spotted departing ARA tanks for a voyage to Saudi Arabia, where high-sulphur fuel oil is typically burned for power generation.

Gasoline stocks rose on the week, their highest since at least 2011. The stock build came even as export interest for northwest European gasoline increased, probably driven by continued contango structure, where prompt prices are weaker than those for future delivery, which is incentivising putting gasoline and blending components into storage. Gasoline cargoes departed ARA for typical export destinations the US and west Africa, but vessels were also heading for the Suez canal for voyages to Asia, including China. Transatlantic gasoline bookings have surged this month, as European exporters look to the US — where demand has shown signs of improvement — to clear supplies.

Independently-held gasoil stocks rose, their highest since October, as traders look to take advantage of the contango structure by putting product into tank. Gasoil entered ARA storage from India, Norway, Russia and Saudi Arabia this week, while outflows were recorded to the UK. The rise in inventories came even as gasoil flows up the Rhine to inland markets reached their highest weekly level since at least 2017, according to Insights Global data. Diesel in the inland truck market has traded premiums to ARA barge prices — up by around 18pc from January-February premiums — as German imports have remained robust in the face of low consumer demand.

Jet fuel inventories rose to their highest since May 2017. Jet fuel arrived at ARA from Saudi Arabia and the UAE principally, and departed for the UK. End-user jet kerosine demand remains extremely weak as a result of travel restrictions linked to the Covid-19 pandemic. Jet fuel could arrive in northwest Europe from east of Suez in May, which would be the highest this year, according to Argus tracking data.

Naphtha inventories rose on the week, as an Aframax tanker delivered the product from Algeria, in addition to inflows from Russia and the UK. No naphtha outflows were recorded, amid suggestions that naphtha demand from the petrochemical sector has been weak, leading to a reversal in the typical flow of naphtha up the Rhine to petrochemical units.

Reporter: Robert Harvey

May 7, 2020 – The volume of oil products held independently in storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and trading hub rose during the past week to reach their highest since April 2016, according to the latest data from consultancy Insights Global.

Overall stocks reached their highest since 7 April 2016 during the week to yesterday, with inventories of all surveyed products rising for a second consecutive week. The week on week increase meant that total inventories have now risen since underlying crude prices began plummeting in early March. Falling crude prices and low consumer demand prompted a steep contango in the forward curves of the relevant markets, making storage the most attractive course of action for many market participants. Inventories of most products have reached high capacity, with the remaining tank space already fully allocated.

Fuel oil and naphtha inventories reached their highest since Argus began recording the data from Insights Global in January 2011. Fuel oil stocks rose on the week. Low demand for bunker fuels locally and high freight costs closing the arbitrage route to Asia-Pacific provided little outlet for fuel oil. And tankers arrived carrying cargoes from France, Sweden, the UK and the US.

Naphtha stocks rose, after a fall in demand from petrochemical end-users along the river Rhine. Rival petrochemical feedstocks are being used in increasing quantities by end-users around Europe, and BASF even offered a naphtha cargo in the afternoon trading window on 5 May. And naphtha demand from gasoline blenders was also very low during the reporting period, weighed down by poor road fuel demand. Tankers arrived from Algeria, Norway, Russia and the UK while none departed.

Gasoline inventories reached their highest since January 2019, but came within of their highest level on record. Outflows to China, where the recovery in end-user demand is further advanced than it is in Europe, remained high. Tankers also departed for the US, west Africa and Mexico. Tankers arrived in the ARA area from Denmark, France, Italy, Russia and the UK.

Gasoil inventories reached their highest since January 2020. The volume of gasoil arriving on tankers fell slightly on the week but remained high, with tankers arriving from Norway, Russia, Singapore and the US. Demand from inland also slowed on the week, impacted by increasing competition for barges as water levels fall and market participants work to move cargoes between tanks to make space for incoming tanker cargoes.

Jet fuel stocks reached their highest since July 2019, with low consumer demand again making storage the only real outlet for cargoes. The volume arriving in the area rose on the week, with tankers arriving from Asia-Pacific as well as Singapore. Jet fuel refining margins turned negative in northwest Europe on 4 May for the first time ever on low demand and rising inventories.

Reporter: Thomas Warner

April 30, 2020 – The volume of oil products held independently in storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and trading hub rose during the past week, supported by low consumer demand, according to the latest data from consultancy Insights Global.

Overall stocks reached their highest since August 2019 during the week to yesterday, with inventories of all surveyed products rising. The increase was the highest week on week rise in percentage terms since 11 January 2018. Low consumer demand has prompted a steep contango in the forward curves of the relevant markets, making storage the most attractive course of action for many market participants. Storage tanks in the Mediterranean are likely to be full by mid-May as a result, while in the ARA area overall independent storage capacity has been filled. It now appears impossible to rent storage tanks in the area, as the outstanding has already been allocated.

Gasoil recorded its highest week-on-week rise since September 2018, gaining to reach its highest since 6 February. The arrival of three Aframax and one Suezmax tanker carrying gasoil from Saudi Arabia buoyed inventories, as did the arrival of cargoes from Russia and the US. The volume departing ARA for delivery along the river Rhine rose on the week, reflecting an increase in diesel demand from German consumers. Heating oil flows up the Rhine were also at elevated levels. Northwest European heating oil quotes reached their lowest since at least 2008 on 22 April, while the contango in the Ice gasoil forward curve made storage an attractive option.

Gasoline inventories recorded the smallest rise of any surveyed product. Small cargoes arrived in the ARA area from Finland, France, Italy, Russia, Spain and the UK. Tankers departed for Mexico, Singapore and Port Said for orders. The volume of gasoline — including blending components — arriving into the area from inland Germany reached the highest weekly total since Insights Global began recording the relevant data in 2017. High gasoline inventories inland and low consumer demand in Germany prompted refiners to transport blending components to the ARA rather than storing them locally, adding further support to ARA stocks.

Fuel oil, jet fuel and naphtha all recorded double-digit stock increases. Fuel oil inventories reached their highest since June 2018. Low demand for bunker fuels locally and high freight costs closing the arbitrage route to Asia-Pacific provided little outlet for fuel oil. And tankers arrived carrying cargoes from Italy, Russia and Spain.

Jet fuel stocks reached their highest since 5 December, with low consumer demand again making storage the only real outlet for cargoes. At least one tanker did arrive from Asia-Pacific, while one departed for the UK. Jet fuel prices in northwest Europe fell to fresh 21-year lows on 27 April on concerns over future air travel demand once restrictions have eased.

And naphtha stocks reached their highest since August 2019, again prompted by low end-user demand and a steep contango in the forward curve. The volume of naphtha leaving the ARA for destinations along the river Rhine fell on the week, pushed down by an almost total lack of buying interest from gasoline blenders.

Reporter: Thomas Warner