Author: Greta

ARA Oil Products Stocks Edge Higher

30 January, 2020 (Argus) — The total volume of oil products held independently in storage in the Amsterdam-Rotterdam-Antwerp (ARA) area rose on the week, steadying after a sharp drop from week highs in the previous week, according to the latest data from consultancy Insights Global.

Overall ARA stocks reached a bit higher than in the week to 29 January. The small rise was driven by a raise gain in gasoil inventories, which offset reductions in gasoline and fuel oil inventories.

Gasoil stocks rose in the week to 29 January, with cargoes arriving from India, Algeria, and Russia. Russian gasoil exports are likely to rise in January after the export schedule at the port of Primorsk was set at a multi-year high, up sharply in December. Gasoil cargoes departed ARA for west Africa and the UK. Lower prices in Europe have seen buying interest from west Africa pick up, which has prompted gasoil to depart Europe for west Africa in January, the highest since August. Demand in northwest Europe remains weak for gasoil, which could also explain the stockbuild.

Gasoline stocks dipped lower on the week, as exports rose. Cargoes departed ARA for Nigeria, the UAE, Puerto Rico, Libya and the UK. Exports from ARA to Puerto Rico have risen sharply this month, according to data from oil analytics firm Vortexa, with flows for January. The stockdraw could also have been driven by lower flows of gasoline along the Rhine into ARA, amid low water levels along the river. Gasoline arrived in ARA from Sweden, France and the UK over the monitoring period.

Fuel oil inventories in ARA dropped in the week to 29 January. Inflows into ARA came from Norway, the UK, and Germany, while no cargoes were spotted delivering fuel oil from Russia — the world’s principal fuel oil exporter — into ARA. Russia typically exports high-sulphur fuel oil, demand for which has been curbed by the IMO 2020 global marine fuel sulphur cap. Russian fuel oil has instead found firm demand in the US, where it is being purchased for coking units. Fuel oil tankers departed ARA for Malta this week, which could result in onward shipments east of Suez.

Naphtha stocks in the ARA gained, according to Insights Global. No naphtha cargoes departed the trading hub, while cargoes entered from Spain, France, Russia and the UK. Naphtha demand has weakened from the petrochemical sector amid falling prices of rival feedstock propane, while buying interest from gasoline blenders is also weak as a result of a closed arbitrage to the US Atlantic coast.

Jet kerosine inventories dropped on the week. Jet was delivered from the UAE, while no vessels were spotted taking jet out of the trading hub, implying the stock draw may have been linked to higher overland shipments. But jet fuel stocks in ARA could soon grow as a result of the coronavirus outbreak in China, which has resulted in the cancellation of thousands of flights globally, and severely hampered jet fuel demand in Asia-Pacific. That could result in more supplies heading into Europe from east of Suez.

Reporter: Robert Harvey

ARA Oil Products Stocks Fall Back

24 January, 2020 (Argus) — The total volume of oil products held independently in storage in the Amsterdam-Rotterdam-Antwerp (ARA) area fell on the week after reaching their highest since 19 September a week earlier, according to the latest data from consultancy Insights Global.

Gasoline inventories fell on the week. Demand from the US remained low with US Gulf Coast inventories at record highs. Tankers did depart for west Africa, Puerto Rico, Brazil and the Mediterranean. Some of the gasoline heading for the Mediterranean may travel on to the Mideast Gulf, where supply is tightening ahead of scheduled refinery turnarounds.

Gasoil inventories fell to reach their lowest level in over a month. Cargoes arrived from the US, the UK, Norway and France. Tankers departed the area for Germany and the UK. A fall in diesel margins over the past few weeks may have prompted run cuts in the area, leading to a draw on existing volumes.

Fuel oil stocks fell to reach three-week lows. A single cargo arrived in the area, from Denmark. Tankers departed for Spain, Greece, the UK and France. Jet kerosine inventories also fell heavily, dropping by around 8pc on the week to reach their lowest level since January 2017. No tankers arrived in the ARA area and cargoes departed for the UK.

Naphtha inventories fell to reach five-week lows. Tankers arrived from France and Russia and none departed. Demand from petrochemical buyers along the river Rhine rose week on week, as end-users refilled their storage units following a period of end of year destocking during December.

Reporter: Thomas Waner

ARA Oil Products Stocks Highest Since September

10 January, 2020 (Argus) – The total volume of oil products held independently in storage in the Amsterdam-Rotterdam-Antwerp (ARA) area rose on the week to reach 15-week highs, according to the latest data from consultancy Insights Global.

By far the most significant rise was recorded in fuel oil inventories, which increased on the week. Firm demand in Europe for sulphur fuel oil left little available for export, and very little departed the ARA area. Some fuel oil did depart for the Mediterranean, where supply of VLSFO is tight and demand high. And a tanker departed for the US, possibly carrying high sulphur fuel oil for use in coking units on the Gulf Coast.

Gasoil stocks rose to reach their highest since 31 October. Cargoes arrived from India, Russia, the UAE and the US. Gasoil barge traffic around the ARA area and along the river Rhine rose on the week but from a low base, following a seasonal slowdown over the festive period. Relatively warm temperatures continued to weigh on seasonal demand for heating oil, making barge traffic marginally lower year on year despite the week-on-week rise. Tankers departed for Denmark, the UK and France, where strike action is affecting diesel production.

Naphtha inventories also rose, increasing to reach their highest since March 2019. Tankers arrived from Finland, Norway, Portugal, Russia and the UK, while none departed. Rising prices of rival petrochemical feedstock propane prompted a week-on-week increase in naphtha flows up the river Rhine to petrochemical sites in Germany.

Gasoline inventories fell, owing to a lack of incoming cargoes. Barge activity rose on the week, again from a low base following a seasonal slowdown. High US inventories meant that no tankers departed for either the US Atlantic or Gulf coasts, but tankers did depart for Mexico, Puerto Rico, Canada, Saudi Arabia and west Africa. Outflows to west Africa, a key export destination, fell on the week. Tankers arrived from the Baltics, Sweden and the UK.

Jet kerosine inventories fell on the week to reach their lowest since 10 January 2019. The drop in stocks was prompted by firm demand in northwest Europe, in line with seasonal expectations. Tankers departed for the UK, while none arrived.

Reporter: Thomas Warner

ARA Oil Product Stocks Rise on the Week

12 December, 2020 (Argus) – The total volume of oil products held independently in Amsterdam-Rotterdam-Antwerp (ARA) rose in the week to yesterday, the latest data from consultancy Insights Global show.

Inventory levels in ARA rose on the week, buoyed by rising stocks of gasoil, fuel oil and gasoline. Gasoline inventories rose to reach seven-week highs, with outflows to the US and west Africa both falling. Tankers also departed for Puerto Rico and the Mediterranean for orders. Cargoes arrived from France, Norway, Russia, Sweden and the UK. Barge traffic around the ARA area was steady on the week and no congestion was reported.

Fuel oil inventories rose on the week, with tankers arriving from the Baltics, Denmark, France and Russia. There is likely to be low sulphur fuel oil compliant with upcoming changes to maritime fuel regulations. Tankers departed for west Africa.

Gasoil stocks rose amid a slight increase in incoming volumes. Tankers arrived from the Baltics and Russia, and departed for the UK. Barge demand from along the river Rhine was strong — broadly stable on the week — with consumers keen to bring in diesel and heating oil cargoes ahead of the festive season. Market activity is likely to be low in Germany during the latter half of December.

Jet fuel stocks in ARA fell on rising demand from along the river Rhine, with inland airports increasing their fuel intake before anticipated high demand over the Christmas period. A part cargo discharged in ARA from Abu Dhabi and tankers left for the UK and Vietnam.

Naphtha inventories fell, again prompted by higher demand from along the river Rhine. Petrochemical consumers are likely bringing naphtha out of storage in the ARA area to consume before the year end. Tankers arrived from Algeria, France, Latvia and Spain, while none departed.

Reporter: Thomas Warner

ARA Oil Product Stocks Fall to Their Lowest in a Year

28 November, 2019 (Argus) — The total volume of oil products held independently in the Amsterdam-Rotterdam-Antwerp (ARA) hub in the week to yesterday to reach the lowest level since November last year, according to the latest data from consultancy Insights Global.

Inventory levels in ARA typically reach their lowest during late autumn and winter owing to end-of-year destocking and anticipated lower winter demand, which impacts production during the third quarter.

Stocks of all surveyed products fell during the week to 27 November. Gasoil stocks dropped the most in outright terms, amid low imports and a week-on-week rise in barge flows from ARA to the area around Shell’s Godorf refinery. Gasoil supply in the area has been squeezed in recent weeks because of problems restarting units at Godorf following maintenance. But demand from other inland destinations was weak, with low Rhine water levels prompting loading restrictions for barges. A tanker carrying gasoil arrived in ARA from Saudi Arabia over the past week, while cargoes left for France, Germany and the UK.

Naphtha inventories fell by the most in percentage terms, dropping on the week. Steep backwardation in the northwest European market — where prompt prices are higher than forward values — has deterred buyers throughout November, prompting stock draws and pushing inventories to two-month lows. Naphtha cargoes arrived in ARA from France, Norway and Portugal in the week and none arrived.

Gasoline inventories fell on the week to reach their lowest level since November 2016, despite a drop in shipments to the US and west Africa. Gasoline cargoes departed ARA for both regions but the total volume was lower than the previous week. Gasoline tankers also left for Mexico and the Mediterranean. Inflows were also lower on the week, weighed down by a seasonal fall in gasoline demand. Barge congestion prompted some gasoline and gasoline component loading delays around Amsterdam and Antwerp.

Fuel oil stocks declined on the week — cargoes arrived from Poland, Russia and Sweden but the incoming volume was the lowest in several weeks. An Aframax tanker carrying fuel oil departed for Jeddah in Saudi Arabia and tankers also departed for west Africa.

Jet fuel stocks in ARA fell. Demand was low, in line with seasonal expectations. Ample supply, particularly in the Mediterranean, continued to weigh on European jet fuel premiums to the underlying gasoil contract. No tankers arrived or departed ARA carrying jet fuel cargoes.

Reporter: Thomas Warner

ARA Oil Product Stocks Reach Fresh 11-Month Lows

21 November, 2019 (Argus) — The total volume of oil products stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) area fell in the week to yesterday, and reached their lowest since December 2018, according to the latest data from consultancy Insights Global.

Inventory levels in ARA typically reach their lowest during late autumn and winter owing to end-of-year destocking and anticipated lower winter demand that impacts production during the third quarter. Fuel oil and gasoline inventories were the only two surveyed product groups to record week-on-week rises.

The arrival of fuel oil cargoes from Canada, France, Italy, Poland and Russia more than offset the departure from ARA of the Aframax Minerva Concert for Singapore, and the departure of two panamaxes for west Africa.

Gasoline inventories rose by 0.9pc on the week, supported by inflows from France, Germany, Italy and the UK. The volume of barge traffic was broadly stable and no congestion was reported at loading and discharge terminals. Tankers departed the region for the Mediterranean, Mexico, the US and west Africa.

Inventories of all other products fell incrementally on the week. Gasoil stocks dropped amid firming demand for heating oil in the European hinterland, which contributed to a rise in middle distillate barge bookings. Barge traffic from ARA into Germany was also supported by falling Rhine water levels, with market participants working to bring in cargoes before loading restrictions increase further. Tankers departed ARA for Brazil, Ireland, the UK, the US and west Africa and arrived from India, Russia and Saudi Arabia.

Naphtha inventories fell on the week and demand from petrochemical end-users along the river Rhine weakened, reducing barge activity. No naphtha tankers departed ARA and cargoes arrived from Algeria, France, Latvia, Poland, Russia and the UK.

Jet fuel stocks in ARA fell. Demand was low in line with seasonal expectations, and ample supply particularly in the Mediterranean continued to weigh on European jet fuel premiums to the underlying gasoil contract. No tankers arrived or departed carrying jet fuel cargoes.

Reporter: Thomas Warner

ARA Oil Product Stocks Fall Heavily

14 November, 2019 (Argus) — Total oil products held independently in the Amsterdam-Rotterdam-Antwerp (ARA) storage hub have fallen over the past week to reach their lowest level since December 2018, according to the latest data from consultancy Insights Global.

Inventory levels in ARA typically reach their lowest point during late autumn and winter.

Fuel oil inventories fell the most, dropping on the week to reach the lowest since May. Tankers carrying fuel oil arrived in ARA from Denmark, France, Poland, Russia and the UK and departed for west Africa and the Mediterranean, most likely for onward transit east of Suez. Less fuel oil arrived from Russia amid rising Russian shipments to the US.

Naphtha inventories fell after a period of tight supply in northwest Europe, resulting from low inflows from the Mediterranean. Barge congestion in the Rotterdam area that disrupted loadings a week earlier eased, following a period of heightened gasoline blending activity. But demand from petrochemical facilities in the area and along the river Rhine remained firm, weighing on inventories. Tankers carrying naphtha arrived in ARA from France, Norway, Russia and the UK over the past week, while none arrived.

Gasoil inventories — the single largest product group by volume — fell on the week to reach their lowest level since March. Imports fell week-on-week and cargoes arrived from Russia only. Low temperatures supported heating oil demand, prompting a rise in barge traffic into Germany. Gasoil tankers also departed for the UK and Brazil.

Gasoline inventories fell on the week, weighed down by a rise in exports. Tankers carrying gasoline departed ARA for the Mediterranean, Puerto Rico, west Africa and the US and arrived from the Baltics, Spain and the UK. Gasoline barge traffic eased week-on-week, but is likely to recover in the coming weeks owing to rising gasoline barge liquidity in the area.

Jet fuel stocks in ARA fell in the past week. Demand was low, in line with seasonal expectations. Supply in Europe remains ample on high arrivals from east of Suez in recent weeks. A total of jet fuel is scheduled to arrive at ports in Europe in November and a preliminary is already scheduled to make the voyage from east of Suez to Europe in December.

Reporter: Thomas Warner

ARA Oil Product Stocks Rise on Fuel Oil Stockbuilding

8 November, 2019 (Argus) – The total volume of oil products held independently in Amsterdam-Rotterdam-Antwerp (ARA) rose during the week to yesterday, according to the latest data from consultancy Insights Global.

Fuel oil inventories rose on the week, amid continued stockbuilding of IMO 2020 compliant low-sulphur fuel oil ahead of upcoming changes to maritime fuel regulations. Demand for IMO-compliant fuel oil is already rising, as shipowners operating long-haul routes will need to use compliant fuels for voyages scheduled to reach their destination after 1 January. Tankers arrived in ARA from Denmark, Poland, Russia and the UK and departed for west Africa.

Naphtha inventories rose, bolstered by tankers arriving from Russia, Spain, the UK and west Africa. Tight supply in the Mediterranean caused by scheduled refinery turnarounds supported naphtha prices immediately prior to and during the reporting period, stimulating inflows. But demand from along the river Rhine prompted a week-on-week rise in barge movements inland, prompting some naphtha barge congestion in the Rotterdam area.

Gasoil inventories, the single largest group by volume, were the only product to fall on the week. Inflows remained healthy, with tankers arriving from Russia and Saudi Arabia. But rising demand from areas adjacent to ARA prompted the overall fall in inventories, with cargoes leaving via tanker and barge to France and Germany. Rising Rhine water levels weighed on barge freight rates, supporting flows into both countries. Unseasonably low temperatures may also have increased inland demand for heating oil. Tankers also departed for the UK and west Africa.

Gasoline inventories rose on the week, with healthy outflows to the US and west Africa largely offset by an increase in gasoline coming into ARA from Germany. Gasoline production is rising in Germany as refineries return from scheduled Autumn maintenance. Tankers arrived in the ARA area from Italy, Norway, Portugal and the UK and departed for Brazil, the US and west Africa.

Jet fuel stocks in ARA rose. Demand was low in line with seasonal expectations, and jet fuel traffic was minimal. Recent contango in the jet forward curve supported inflows. Tankers arrived from Saudi Arabia and South Korea, and departed for the UK and Ireland.

Reporter: Thomas Warner

ARA Oil Product Stocks at Six-Month Low

1 November, 2019 (Argus) – Lower distillate stocks resulted in decline in oil products in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub, according to the latest data from consultancy Insights Global.

Total oil product stocks now stand at their lowest since 9 May. Another sharp fall in gasoline inventories contributed to the fall, as they dropped in the week to 30 October — the lowest since September 2018. Stocks have been drawn down in the past two weeks, with firm export interest and the absence of significant restocking in the region. An open transatlantic arbitrage has resulted in tankers continuing to depart for the US and Latin America, as well as west Africa. Gasoline arrived from France, Russia and the UK, but steep backwardation in the Eurobob gasoline swaps market has deterred suppliers from restocking as long as possible.

US gasoline demand recently reached a seasonal high, according to yesterday’s EIA report for the week to 25 October, up from a year ago and higher than the five-year average for the week.

Market structure is also likely to have deterred the restocking of gasoil, which fell on the week. Strong inland demand and lower freight rates have led to an increase in departures to Germany, as well as to Denmark, the UK and the Mediterranean. Tankers arrived from the Baltic, Russia and the United Arab Emirates. A fall in temperatures in northwest Europe this week will have added to heating oil demand.

The arrival of two Aframax-sized vessels from Algeria contributed to a rise in naphtha stocks, the highest since June. Amid firm petrochemical demand in northwest Europe, cargoes arrived from Finland, France, Russia, the UK and west Africa. No tankers departed the region, as is normal at this time of year.

Two large tanker arrivals from the United Arab Emirates helped jet stocks to rise, outweighing departures from the ARA area to Ireland and the UK.

Fuel oil stocks edged higher for the second week. Volumes are likely to be increasing because of low-sulphur fuel oil demand ahead of the marine fuel sulphur cap from 1 January 2020. Tankers departed the region for Saudi Arabia and west Africa, and arrived from Russia.

Reporter: George King Cassell

ARA Gasoil Inventories Slump With Diesel Backwardation: IG

25 October, 2019 (Bloomberg) – ARA gasoil inventories slumped to their
lowest level in five months as steep backwardation in Europe’s
diesel market removed any incentive for storage, according to
Insights Global.
* Gasoil/diesel stockpiles in independent storage in NW Europe,
the lowest since May 23, and below the five-year seasonal average
** Pronounced backwardation in ICE gasoil mean there is “no
incentive whatsoever” for market participants to store diesel,
Lars Van Wageningen, operations director of Insights Global,
said by phone
** NOTE: M1 gasoil settled at $7/ton more than M2 gasoil on
Wednesday, a price structure known as backwardation, ICE Futures
Europe data shows
** The M1-M2, highest so far in 2019 excluding expiry day anomalies

* Gasoline stockpiles, the lowest in two
weeks; remained above 5-year seasonal average
** Stockpiles drew in past week as shipments increased to the
U.S. and West Africa, while port delays in Amsterdam also eased:
Wageningen
** There were outgoing gasoline cargoes in the past week to
Australia, Brazil, Canada, U.S., West Africa, Insights Global
list shows

Reporter: Bill Lehane