Author: Greta

20 June, 2019 (Argus) — Inventories of oil products independently held in the Amsterdam-Rotterdam-Antwerp (ARA) area have fallen in the past week, driven by a decline in stocks of gasoil, gasoline and naphtha.

Total oil product stocks in the ARA hub fell in the week to 19 June, according to consultancy Insights Global. In the previous week, stocks rose, the highest level since May 2017.

The week-on-week decrease was driven by a drop in gasoil stocks. But gasoil inventories remain comfortably above the year-to-date weekly.

Gasoil cargoes were imported to the ARA region from Russia, Saudi Arabia and the US in the week to 19 June, but shipments departed for France, the UK and west Africa. In the previous week, two Suezmaxes delivered gasoil to the ARA area from India, and one from the UAE.

Demand from eastern Germany has remained strong as a result of crude supply disruptions to refineries in that region. But this is set to ease. Russian crude flows through the Druzhba pipeline to Germany’s PCK Schwedt and Leuna refineries resumed on 17 June, although neither plant is yet operating at full capacity.

Gasoline inventories dipped by on the week, pushed lower by improved arbitrage economics for shipments to the Americas, as a result of sharply lower European barge prices, which fell to three-month lows this week. The Nymex front-month Rbob gasoline contract reached premium to prompt-loading Eurobob oxy barges on 18 June, its highest since the end of April.

Record US gasoline demand drove more European cargoes west — implied gasoline demand hit in the week to 14 June in the US, according to the latest EIA data, its highest since at least 1991 when records began.

Naphtha supplies held in ARA storage have fallen in the past week. Northwest European naphtha’s discount to crude has narrowed, amid firmer demand following the return to operation of major petrochemical facilities in Asia-Pacific, although cargo bookings on the route have been thin as of yet.

Jet fuel stocks in the ARA region rose in the week to 19 June, putting inventories at their highest since May 2017. The northwest European jet fuel market continues to be well supplied off the back of east of Suez shipments, particularly from the Mideast Gulf and India. Supplies are being pulled into the ARA area from further afield as demand in northwest Europe begins to pick up for the summer flying season and refinery shutdowns constrain European jet fuel production.

Fuel oil inventories were little changed on the week, gaining less. The Baltic Sunrise departed Rotterdam for Singapore with a fuel oil cargo on 14 June, but those supplies have been replaced by the arrival of Aframax tankers from other parts of northwest Europe and the Baltics.

Reporter: Robert Harvey

London, 13 June (Argus) — A second consecutive week-on-week rise in gasoline stocks pushed inventories of oil products independently held in the Amsterdam-Rotterdam-Antwerp (ARA) region to their highest since May 2017.

Total oil product stocks rose in the week to 12 June, with inventories of all surveyed products rising on the week. The share of utilised independent tank space in the ARA region has hit its highest in two-and-a-half years. Rising gasoline stocks accounted for an increase in overall utilisation recorded over the last fortnight.

Firmer northwest European barge prices, prompted by tighter supply in Germany, continued to draw large cargoes into the ARA region during the week. Record volumes of Argus eurobob oxy barges sold last week contributed to the rise in inventories, booked to load on a prompt basis. Refinery outages in Germany have bolstered demand from buyers along the Rhine.

Gasoil stocks rose to reach their highest since October 2018. German demand remained steady on the week, supported by lower output from the PCK Schwedt refinery and Total’s Leuna refinery. But production at the refineries is likely to increase in the coming weeks following the resumption of crude flows through the Druzhba pipeline. A weaker diesel market in Asia-Pacific pushed more tankers into Europe from east of Suez. Two Suezmaxes arrived from India, with a further tanker arriving from the UAE.

Jet fuel stocks in the ARA area rose to reach their highest since May 2017. Two tankers from the Mideast Gulf and South Korea — the Norddolphin and the Sti Nautilus — discharged in ARA in the week to yersterday. Local demand is likely to increase throughout June, and barge flows around the ARA area rose week-on-week.

Naphtha inventories in ARA rose to a four-week high. Demand from the northwest European petrochemical sector remained low as a result of scheduled maintenance at two ethylene crackers in the ARA region. Buying interest from gasoline blenders was also slow because of the high volumes of finished-grade gasoline arriving in the area. Blenders typically add naphtha to gasoline in order to reduce the viscosity of the finished product.

Northwest European naphtha’s discount to North Sea Dated crude remained at multi-year lows during the week to yesterday, owing to a significant supply overhang. But even greater surpluses in other key production regions continued to make northwest Europe an attractive destination for sellers. A cargo of heavy naphtha is expected to arrive later in the month from the US Gulf Coast, reflecting the high levels of supply across the Atlantic.

Reporter: Thomas Warner

London, 23 May (Argus) — Rising stocks of gasoline offset falling inventories of other oil products held independently in the Amsterdam-Rotterdam-Antwerp (ARA) region in the week to yesterday, according to consultancy Insights Global.

Ongoing refining issues in Germany continue to support northwest European gasoline prices, attracting more cargoes to ARA. Prompt-loading Argus Eurobob oxy barges hit six-month highs on 20 May, drawing in shipments from Italy, Norway, France, Portugal, Russia, Spain and the UK and pushing inventories up.

Tankers left ARA area for the US, Canada and west Africa, but also for Germany, which typically sends gasoline to ARA. But issues at least three German refineries, including Total’s Leuna, PCK’s Schwedt and BP’s Gelsenkirchen refineries have tightened supply in Europe’s largest gasoline market and increased demand for Rhine barges. Shutdowns at Total’s Donges and Grandpuits refineries combined with reduced run rates at BP’s Rotterdam and Total’s Antwerp refineries to further constrain northwest European gasoline supply.

Naphtha stocks in the ARA region fell to four-week lows on steady demand from gasoline blenders and low prices reducing the incentive to bring product into the storage hub. Northwest European naphtha’s discount to North Sea Dated crude reached its lowest level since November 2014 yesterday, pushed downward by petrochemical outages around the continent and ample supply in key export region Asia-Pacific. No tankers left the ARA area as a result. Tankers arrived from Portugal, Norway, Russia and Spain, largely as part of term contracts.

Gasoil inventories fell to nine-week lows owing to reduced diesel inflows from Primorsk in May, with incoming volumes coming under downward pressure from bankruptcy proceedings at New Stream’s Antipinsky refinery. The fall was partially offset by an increase in imports from the US, while tankers also arrived from Latvia and Russia. High inventories relative to gasoline have made the gasoil market more resilient to the refinery outages affecting other products.

Jet fuel inventories reached two-year highs today, also bringing the May average to two-year highs, on high import levels from east of Suez. An cargo arrived from South Korea and demand from within Europe was limited. A single tanker departed for the UK.

Northwest European jet fuel availability has tightened in the past week on regional refinery outages, tightening Asian supply, and a technical issue affecting jet fuel output at Total and state-owned Saudi Aramco’s joint-venture Satorp refinery in Jubail, Saudi Arabia. But the effect appears to be delayed, with any production decline likely to eat into already-high inventories.

Reporter: Thomas Warner