Category: ARA stocks

January 14, 2021 – The total amount of oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose over the past week, with a rise in naphtha stocks offsetting a downturn in gasoil inventories, according to consultancy Insights Global.

Naphtha stocks reached their highest since June 2020 during the week to yesterday, with inflows to the region being supported by firm demand from petrochemical end-users around northwest Europe. An LR2 arrived from Algeria and cargoes also arrived from Russia, while no naphtha departed the region on seagoing tankers.

The volume departing the region on barges for petrochemical sites along the river Rhine was stable on the week at a high level, with naphtha pricing well below the level of rival petrochemical feedstocks.

A fall in gasoil stocks largely offset the rise in naphtha inventories. Gasoil stocks fell as well, weighed down by the departure of tankers for west Africa and France, where refinery shutdowns are weighing heavily on overall production. Only three of the country’s seven refineries are currently processing crude.

France also received some gasoline from the ARA area, delivered by barge along the river Rhine, while gasoline barge flows into the ARA area from German refineries remained steady at a high level. The overall volume of gasoline held in independent storage rose despite the arrival of barges from Germany and gasoline tankers from France, Russia, the UK and Ireland, as tankers departed the region for Canada, west Africa and the US. Tonnes of European gasoline was booked to head transatlantic last week, a one-month high.

Fuel oil stocks were up, with the departure of low sulphur cargoes to the Mideast Gulf and Mediterranean areas being more than offset by the arrival of an aframax from Estonia and smaller cargoes from France, Germany, Norway, Russia and the UK. Jet fuel stocks fell. A part cargo arrived into the ARA area from the Mideast Gulf on board the Ploutos, which had sailed round the cape of Good Hope to take better advantage of the contango in the Ice gasoil forward curve.

Reporter: Thomas Warner

January 7, 2021 — The total amount of oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub dropped over the past week, with steep falls in fuel oil, naphtha and jet fuel inventories more than offsetting gasoline and gasoil stock builds, according to consultancy Insights Global.

Stocks of gasoline and gasoil rose during the week to 6 January as the resurgence of Covid-19 in Europe prompted another round of lockdown measures in key markets, including Germany.

Gasoline stocks went up, buoyed by the arrival of cargoes from France, Portugal, Russia, Spain and the UK. Outflows to the US fell on the week.

Tankers carrying gasoline also departed ARA for the Mediterranean, Mexico and west Africa.

Gasoil stocks increased, with the arrival of cargoes from the Baltic states and Russia offset by the departure of cargoes for France and Germany.

The volume of diesel heading inland on barges was steady on the week, but more heating oil made its way inland as temperatures dropped.

Stocks of all other surveyed products fell. A very-large crude carrier (VLCC) loaded fuel oil in Rotterdam for the first time since May 2020, according to Vortexa data.

The Haburt loaded fuel oil in Rotterdam on 3 January before heading to Scapa Flow in Scotland to load some Kraken crude, and then departing for Singapore.

Kraken is a heavy crude grade that some Asian buyers have been using for fuel oil blending. Fuel oil cargoes also departed ARA for Saudi Arabia, the Caribbean and the Mediterranean, and arrived in smaller quantities from Denmark, Poland, Russia and the UK.

Naphtha stocks, having risen the previous week. High naphtha demand from petrochemical plants along the river Rhine prompted a week-on-week increase in naphtha volumes heading inland on barges from the ARA area. Naphtha cargoes arrived in ARA from Norway and Russia.

Jet fuel stocks fell, dipping back below 1mn t. No jet fuel arrived in the ARA area from elsewhere while two small cargoes departed for the UK.

Reporter: Thomas Warner

December 10th, 2020 — Inventories of oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub have risen over the past week, according to data from consultancy Insights Global, after reaching their lowest since April a week earlier.

Total oil product stocks rose in the week to 9 December, reversing some of the losses recorded the previous week when product stocks suffered their steepest week on week decline since January. European demand remains under heavy pressure from lockdown measures in key markets France and Germany.

A slight week on week recovery in Rhine water levels helped bring more refined products into the ARA area from the European hinterland.

Gasoline stocks were lower, with outflows from the region rising on the week. Tankers departed for South Africa, the US and west Africa.

The volume of gasoline blending components coming into the region from the European hinterland was stable at a high level for a third consecutive week, supported by the rise in Rhine water levels. Component flows into the ARA from inland Rhine destinations was very limited for the preceding two months before rising in late November.

Fuel oil inventories also fell, reaching three-month lows. As with gasoline, the drop in stocks was the result of high outflows to regions where end-user demand is firmer.

Tankers departed for the Mediterranean, west Africa and Saudi Arabia. The tanker which departed for Saudi Arabia was an Aframax, probably containing high sulphur fuel oil.

Stocks of all other surveyed products rose. Low local demand for road fuels combined with a seasonal slowdown in the northwest European market to limit flows from the ARA area up the Rhine into Germany. Tanker inflows also fell on the week, with relatively low volumes arriving from the USA and Saudi Arabia.

But tanker outflows were also low, with just one cargo departing for the UK.

Naphtha stocks leapt on the week, after falling a week earlier. The recovery in inventory levels was the result of cargoes arriving from the Russian Baltic and Algeria against a backdrop of poor demand from gasoline blenders in the ARA area. Flows of naphtha up the river Rhine to petrochemical end-users slowed on the week, but flows on the route are unlikely to stay low owing to naphtha’s competitive pricing relative to other feedstocks.

Jet fuel stocks rose after reaching their lowest weekly level since August a week earlier. The arrival of tankers from Kuwait, North Sea floating storage and the UAE offset a rise in westbound transatlantic departures, as well as the departure of cargoes for the UK and Ireland.

Reporter: Thomas Warner

December 03, 2020 -Inventories of oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub have fallen sharply over the past week as poor regional demand prompted a rise in seaborne exports.

Total oil product stocks fell in the week to 2 December, the steepest week-on-week decline since January, according to data from consultancy Insights Global. Regional demand was subdued by tightened lockdown measures in key markets France and Germany, and low Rhine water levels which inhibited traffic on the route between the ARA area and the European hinterland.

Gasoline stocks were lower, with shipments to the US and west Africa both rising on the week. Gasoline cargoes also departed ARA for Singapore, Mexico and Canada. Weak demand within northwest Europe pushed gasoline refining margins into negative territory yesterday for the first time since August. Germany is extending its partial lockdown until 10 January. England moved out of its national lockdown this week and has transitioned to a regional tier system of restrictions. France will ease its lockdown on 15 December if Covid-19 cases continue to decline, but restrictions such as a night-time curfew will remain.

Lacklustre regional demand for road fuels demand also affected gasoil inventories ARA, with cargoes departing for Argentina, the UK and the US. Middle distillates demand is less vulnerable to coronavirus restrictions than gasoline demand owing to its use in haulage and industrial activity, but the European market is still oversupplied. The trade in diesel and gasoil barges along the river Rhine was hampered by low water levels over the past week, which restricted loadings on some routes.

Naphtha stocks fell by more than any other surveyed product in percentage terms, dropping on the week. At least one cargo departed ARA for Brazil, where it will be used as a petrochemical feedstock. Naphtha demand from petrochemical customers along the river Rhine was robust but slightly lower on the week. Low water levels meant that more barges were required to carry a slightly lower volume than went inland a week earlier. Small naphtha cargoes arrived in the ARA area from Algeria and Russia. Baltic naphtha cargoes have tended to flow into New York Harbor rather than the ARA area in recent weeks because of a lack of gasoline blending activity.

Jet fuel stocks fell to their lowest weekly level since late 27 August, amid a rise in shipments to Ireland and the UK, where commercial air travel is expected to pick up as lockdown measures ease.

Fuel oil inventories fell most heavily in outright terms, erasing the large rise in stocks recorded the previous week. Fuel oil cargoes departed for the Mediterranean, the Port Said area, Singapore and west Africa. Some smaller cargoes arrived from France, Poland, Russia and the UK.

Reporter: Thomas Warner

November 26, 2020 — Total oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose on the week, supported by builds in gasoil and fuel oil, according to data from consultancy Insights Global.

Gasoil inventories rose as a result of high inflows and the sixth consecutive week on week fall in gasoil flows from the ARA area to inland destinations along the river Rhine.

Consumption in the northwest European hinterland is under heavy pressure from Covid-19 restrictions, and inventories at inland terminals are also high.

Tankers arrived in the ARA area from Saudi Arabia and Russia, and the volume departing for the US fell on the week. Fuel oil stocks rose on the week to reach five-week highs. Cargoes arrived from the Caribbean, Denmark, Latvia, Russia and the UK. A single tanker departed for Saudi Arabia and several small vessels left for the
Mediterranean carrying bunker fuel cargoes.

Stocks of all other surveyed products fell. Gasoline stocks were lower, with a rise in outflows to west Africa. Dwindling interest from the well-supplied US Atlantic coast market reduced westbound transatlantic flows.

Low demand within Europe continued to weigh heavily on blending activity, keeping the quantity of gasoline blending components moving around the ARA area on barges low.

Naphtha stocks fell heavily, reaching four-week lows. Some limited demand emerged from northwest European gasoline blenders, but the petrochemical sector continued to absorb the lion’s share of available naphtha cargoes. Small cargoes arrived in the ARA area from Norway, Portugal, the UK and Russia.

Jet fuel stocks fell for a third consecutive week to reach seven-week lows, with low inflows. And regional output is being constrained by a combination of refinery run cuts, economic shutdowns, maintenance work and refiners choosing to maximise gasoil production.

Reporter: Thomas Warner

November 19, 2020 — Total oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell on the week,
as a rise in gasoline and naphtha stocks was outweighed by falls in all other products, according to data from consultancy Insights Global.

Gasoline stocks rose to reach six-week highs as a result of dwindling demand from key export market the US Atlantic Coast.

Implied US gasoline demand fell to a four-month low in the week to 13 November, according to the latest EIA data.

The lack of demand pushed stocks to a seven-week high in the world’s largest gasoline consuming country and key export destination for European producers.

Tankers departed the ARA area for the US, but the total volume was eclipsed by the amount departing for west Africa and the Mediterranean.

Low demand in Europe and from export markets continued to weigh heavily on blending activity, reducing the quantity of gasoline blending components moving around the ARA area on barges despite barge freight costs on intra-ARA routes being at record lows.

Naphtha was the only other surveyed product to rise, with stocks increasing on the week to reach six-week highs. The lack of gasoline blending reduced local demand for naphtha as a blending component.

Demand from petrochemical end-users inland was marginally lower on the week, but is expected to stay robust throughout the winter owing to relatively high prices of rival feedstocks. The arrival of several cargoes from Russia and an LR2 from Algeria buoyed inventories further.

Gasoil inventories fell by almost 8pc to reach their lowest since the week to 30 April. Several cargoes departed for the US Atlantic coast as part of an unusual reverse arbitrage route that first emerged in October.

Tankers also departed for the UK and west Africa. Demand from along the River Rhine was low owing to high inventories inland.

Jet fuel stocks fell for a second consecutive week to five-week lows, but remained close to all-time record highs.

Tankers departed for the UK and Ireland while none arrived. Fuel oil stocks fell on the week to reach five-week lows. High sulphur cargoes departed for the Mideast Gulf and west Africa, while IMO-compliant very low sulphur fuel oil left the ARA area on intra-European routes. Cargoes arrived from the Caribbean, Finland and Russia.

Reporter: Thomas Warner

November 5, 2020 — Oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub edged up over the past week after hitting eight-week lows a week earlier.

Stocks rose in the week to 4 November, supported by rises in gasoil, naphtha and jet fuel inventories, according to data from consultancy Insights Global.

Jet fuel stocks rose to fresh all-time highs for the third consecutive week, amid persistently low demand from the commercial aviation sector.

The reintroduction of Covid-19 restrictions across large parts of Europe has put fresh pressure on the demand outlook for jet fuel.

Jet fuel cargoes arrived in the ARA area from Singapore and the UAE over the past week, more than offsetting shipments departing for Ireland and the UK.

Gasoil stocks rose on the week despite several cargoes departing for the US and Canada in a rare reversal of the usual arbitrage route.

Tankers carrying gasoil also departed ARA for destinations elsewhere in northwest Europe, while gasoil arrived from Russia and Saudi Arabia.

Gasoil demand from the European hinterland was steady on the week, but high inventories at depots along the river Rhine appear likely to curtail barge flows as November progresses.

Naphtha stocks rose, boosted by cargoes arriving from Algeria, Russia and the UK. Only one tanker carrying naphtha departed ARA.

Trading firm Vitol booked the Captain Spiro to carry cargo from Rotterdam to Brazil, where it will be used as a petrochemical feedstock.

Demand for naphtha from petrochemical plants within northwest Europe was supported over the past week by high prices of rival feedstocks.

The volume of naphtha heading up the river Rhine on barges rose on the week as a result.

Gasoline inventories fell, drained by cargoes departing ARA for east and west Africa, as well as the Mediterranean, Canada and the Caribbean.

No gasoline tankers departed on the typical trade route to the US, where inventories rose in every region except the west coast last week.

Delays in the blending component barge market around Amsterdam dissipated after some congestion developed during the previous week.

Fuel oil stocks fell on the week, with exports picking up in a quiet market. Tankers carrying fuel oil arrived in ARA from Denmark, France,

Russia and Sweden and departed for the Mideast Gulf, the Mediterranean and west Africa.

Reporter: Thomas Warner

October 22, 2020 — Oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose over the past week, buoyed by a sharp rise in fuel oil stocks, according to data from consultancy Insights Global.

Overall oil product stocks rose in the week to 22 October, but the different products fared very differently. Fuel oil stocks rose on the week, the highest level since mid-July.

Market participants may be drawing cargoes together in the ARA area to send them on the arbitrage route to Singapore.

An Aframax departed for Port Said for orders, where it will either find a home in the eastern Mediterranean or travel onward to the Mideast Gulf or Singapore.

The rise in inventories was the result of cargoes arriving from the Caribbean, where a poor cruise ship season has reduced bunker fuel demand, as well as low sulphur cargoes from Germany and the US. At least one Aframax arrived from the Russian Baltic.

Gasoline inventories rose, against a backdrop of fading demand. Outflows to key export regions the US and west Africa fell on the week, and the traffic in gasoline blending components slowed. Congestion in the blending component barge market had caused loading delays as recently as the beginning of October, but there was little sign of any congestion this week as demand dwindled locally and elsewhere. Tankers arrived in the region from France, Italy, Russia and the UK.

Some gasoil barge loadings were delayed, with inland inventories high enough to prompt some market participants to delay loading barges to take middle distillates inland.

Gasoil inventories fell, and a rare fixture emerged to take European diesel to the US where the New York Harbour area is providing an outlet for the oversupplied European market.

Naphtha inventories fell to reach their lowest since March. An MR tanker departed the ARA area for Brazil, where the naphtha will be used as a petrochemical feedstock.

And it was firm demand from petrochemical end-users in northwest Europe that caused the stockdraw during the week. High prices of rival feedstocks made naphtha relatively attractive to ethylene producers, and the volume leaving the ARA for inland destinations on barges rose on the week.

Jet fuel stocks rose to reach fresh all-time highs, against a backdrop of poor demand. German airline group Lufthansa has warned of a bleak demand outlook during the winter because of Covid-19 related travel restrictions. Two tankers that had been serving as floating storage on the North Sea discharged in the ARA area, and small cargoes departed for the UK and Ireland.

Reporter: Thomas Warner

October 29, 2020 – Oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell over the past week to reach their lowest since 3 September, according to data from consultancy Insights Global.

Overall oil products stocks fell in the week to 28 October, with lower stocks of gasoline, diesel and fuel oil. Jet fuel stocks rose to fresh all, amid chronically low demand from the commercial aviation sector. The Airports Council International (ACI) suggested this week that almost 200 European airports face insolvency in the coming months because of the slump in passenger demand, with passenger traffic down in mid-October compared with the same period last year. Jet fuel cargoes arrived in the ARA area from Singapore and the UAE, both having travelled via the Cape of Good Hope in order to take greater advantage of the contango in Ice gasoil forward prices. Naphtha inventories also rose, but by less.

Gasoline inventories fell, weighed down by low inflows into the area. Tankers departed for the Caribbean, east Africa, the Mediterranean, Mexico and the US, and arrived from the UK and France. Delays in the blending component barge market around Amsterdam re-emerged for the first time since the beginning of October.

Gasoil inventories fell, and as with gasoline, inflows were low. A diesel cargo discharged in ARA, having served as floating storage on the North Sea, and tankers departed for Germany, France and the UK. Inventories inland remained high, limiting fresh demand for middle distillates from the northwest European hinterland. But heating oil demand is likely to intensify in the coming weeks.

Fuel oil stocks fell, having reached three-month highs a week earlier. Two Aframax tankers departed for the Mideast Gulf and at least one tanker left for the Mediterranean. Cargoes arrived from the Caribbean for the second consecutive week, following a poor cruise ship season which reduced bunker fuel demand.

Reporter: Thomas Warner

October 08, 2020 – Oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose over the past week to their highest since the week to 25 June, according to data from consultancy Insights Global.

Gasoline stocks rose to reach five-week highs, although shipments to west Africa increased following a new supply agreement between Nigeria’s state-owned NNPC, trading companies and refiners. Tanker bookings showed European gasoline was shipped on the route in each of the past two weeks, the highest in three months. A high level of gasoline blending activity prompted congestion and loading delays in the blending component market, particularly around Amsterdam.

Naphtha stocks rose to reach eight week highs. Demand for the product remains firm in Europe, supporting prices and in turn drawing more cargoes into the area.

Middle distillate markets continued to labour under high inventory levels, with gasoil and jet fuel stocks reaching three and eight week highs, respectively. Gasoil stocks rose on the week, despite the highest weekly volume of gasoil heading up the river Rhine on barges since mid-July. Higher demand was prompted in part by an increase in Rhine water levels. A further 1.1mn t of gasoil remained in floating storage on the North Sea, according to oil analytics firm Vortexa data.

Jet fuel stocks rose, approaching record highs. Seasonally low demand for jet fuel and the reimposition of some Covid-19 restrictions in Europe continued to weigh heavily on demand. A single tanker arrived from the UAE, having travelled via the Cape of Good Hope.

Reporter: Thomas Warner