Category: ARA stocks

ARA oil product stocks fall on the week

12 July, 2019 (Argus) – Inventories of oil products independently held in Amsterdam-Rotterdam-Antwerp (ARA) fell in the week to today.

Stocks of all surveyed products except naphtha fell on the week. Fuel oil inventories fell most heavily, dropping -week lows. The very large crude carrier (VLCC) Cosdignity Lake departed Rotterdam carrying oil cargo and a smaller tanker departed for west Africa. The arbitrage route to Singapore appeared to be workable in the past week. Vitol booked the VLCCs Front Duchess and FPMC C Melody to take fuel oil to Singapore, loading in Rotterdam on 15 July and 2 August, respectively.

Gasoil inventories fell. Demand from along the river Rhine was steady on the week with gasoil heading inland on barges. Disruption to refining activity caused by the Druzhba pipeline outage in April-May weighed on inland inventories, which are now being restocked. Tankers arrived from Russia and the US and departed for France and the UK.

Gasoline inventories fell on the week. Tankers arrived in ARA from the Black Sea, Norway, Russia, Spain and the UK. But higher demand from the US and rising demand from west Africa supported outflows. Gasoline barges continued to suffer loading delays in the Amsterdam area, with barges and tankers competing for slots.

Jet fuel stocks in ARA fell. Demand from the aviation sector was firm in line with seasonal expectations. No jet fuel tankers arrived in ARA during the reporting period, but at least one departed for the UK.

Naphtha inventories climbed on the week, with rising prices drawing in cargoes from Algeria, France, Latvia, Spain and the UK. The return from scheduled maintenance of several petrochemical facilities in Europe and firm demand from the gasoline blending sector has supported naphtha prices in northwest Europe and bolstered inflows.

Reporter: Thomas Warner

ARA oil product stocks rise on the week

4 July, 2019 (Argus) – Inventories of oil products independently held in Amsterdam-Rotterdam-Antwerp (ARA) have increased by in the week to 3 July, buoyed by a rise in gasoil stocks, according to consultancy Insights Global.

Gasoil inventories rose. Production of middle distillates in the region is rising as refineries in northwest Europe return from planned or unplanned outages. These include three German facilities — Schwedt, Leuna refinery and Vohburg refineries — as well as the Rotterdam refinery and Cressier plant.

Gasoline inventories fell on the week as a result of higher exports to the US Atlantic coast and Canada. An increase in gasoline blending activity caused barge congestion in Amsterdam and Rotterdam as market participants moved finished grade product and components around the area. Tankers departed ARA area for Brazil, west Africa and northern Germany. But increasing refining activity in Germany is likely to curtail gasoline tanker movements from ARA to the country. Gasoline cargoes arrived from the Baltics, Finland, Norway, Spain and the UK.

Naphtha inventories rose on the week, after falling by a similar amount the previous week. Rising northwest European naphtha prices attracted cargoes from Algeria, Norway, Portugal, Russia and the UK.

Fuel oil inventories fell on the week. Tankers departed for the Mediterranean, west Africa and the Suezmax Minerva Evropi left Rotterdam for Singapore. Cargoes arrived in the ARA from France, Lithuania, Russia and the UK.

Jet fuel stocks in ARA fell back slightly from the two-year highs recorded during the last three weeks. Demand rose in line with seasonal expectations. But the return to service of the Leuna refinery weighed on demand for jet fuel barges on the river Rhine, as supply from inland increased. Jet fuel tankers arrived from the UAE and departed for the UK and Ireland.

Reporter: Thomas Warner

ARA oil product stocks rise on gasoline, fuel oil

27 June, 2019 (Argus) — Inventories of oil products independently held in the Amsterdam-Rotterdam-Antwerp (ARA) area have risen this week, boosted by gasoline and fuel oil stock builds.

Total oil product stocks in the ARA hub rose in the week to 26 June, according to consultancy Insights Global. The week-on-week increase was driven by rises in fuel oil and gasoline inventories, respectively (see table).

Gasoline refining margins in Europe rose this week, boosted by increased demand for the product as a result of the shutdown of Philadelphia Energy Solutions Philadelphia. Sellers are likely accumulating gasoline in tanks ready for blending before export to the US in the coming weeks.

Rising prices drew in cargoes from Italy, France, Portugal and the UK. Gasoline barge movements rose on the week as market participants organised product for export. But demand from along the Rhine fell on the week. Refineries affected by the Druzhba crude pipeline contamination gradually returned to full production.

Fuel oil inventories rose on the week. Exports were limited with inventories in key market Singapore ample. No VLCCs loaded during the week to yesterday.

Naphtha supplies held in ARA storage fell during the past week. An oversupplied naphtha market in the last month has weighed on prices and inhibited shipments to northwest Europe. No tankers came from key supply areas north Africa and Russia.

Gasoil inventories fell. German demand rose, prompting a week-on-week increase in middle distillate barge traffic on the Rhine.

Jet fuel stocks in ARA fell back slightly from the two-year highs recorded during the last two weeks. High inventories in northwest Europe prompted several jet fuel tankers from the Mideast Gulf to divert to the US and Africa, weighing on shipments to the ARA area. Demand from along the Rhine continued to rise as consumption increased in line with seasonal expectations.

Reporter: Thomas Warner

ARA oil product stocks drop from 2-year highs

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

ARA oil product inventories hit two-year highs

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

ARA gasoline inventories surge

London, 6 June (Argus) — A sharp rise in gasoline stocks pushed inventories of independently-held oil products in the Amsterdam-Rotterdam-Antwerp (ARA) region higher on the week, according to consultancy Insights Global.

Stocks rose in the week to 5 June.

Gasoline inventories jumped week on week, with cargoes coming into the ARA area coming from Finland, France, Italy, Russia, and the UK.

Relatively firm northwest European gasoline prices have left cargo arbitrages out of Europe to regions such as North and South America and west Africa unworkable in the last few weeks, which has slowed departures. The regional strength has also encouraged the arrival of cargoes from outside of the region — including from the Mediterranean — helping lift supplies at a time when regional demand has been relatively muted for the time of year. This week’s build sees gasoline stocks at their highest since early March.

The rise in gasoline stocks this week coincided with a sharp rise in trading activity. Argus Eurobob oxy gasoline barges changed hands from 3 June up to 16:30 BST on 6 June, not far off total May trading activity.

Gasoil stocks eased off this week, after rising to their highest since October the previous week. Independently-held gasoil stocks in the ARA dipped by in the week to 5 June. Gasoil stocks eased off this week as the Long Range 2 (LR2) tanker Burri departed ARA for west Africa, taking around out of inventories. Gasoil arrived into ARA this week from India, Russia, and the UAE.

But fresh cargoes are expected to keep northwest Europe well-supplied in coming weeks, with a high number of LR tankers set to arrive in the region from the Mideast Gulf and US. Diesel margins in the region have been under sustained pressure because of ample regional supply in recent weeks. Northwest European French diesel’s premium to North Sea Dated crude fell the lowest since March 2018 on 5 June.

Fuel oil stocks also dipped lower this week — with outbound flows to the Mideast Gulf and west Africa offsetting inbound flows from France, Norway, Poland and Russia. Fuel oil flows to the Mideast Gulf could be higher because of increasing power generation demand following the end of Ramadan.

But deteriorating economics for shipments to the Asia-Pacific region continue to deter exports to Singapore, where stocks recently reached a two-year high. The Singapore second-month swap premium to high-sulphur fuel oil cargo prices in northwest Europe has averaged below in the last five trading days, from in the previous five. It is the lowest five-day average since September 2017.

Jet kerosene stocks were largely stable, dipping in the week up to 5 June, with departures from the area to the UK. Jet demand has been slow to pick up ahead of the peak season, but overall demand this year is set to exceed that of last year. Stocks could soon rise — the Alburaq offloaded jet fuel on 6 June in Rotterdam, and five further tankers are scheduled to arrive in ARA by the end of this week. But Total’s declaration of force majeure on jet deliveries from its Leuna refinery in eastern Germany could push ARA supplies towards that area, which could weigh on stocks.

Meanwhile, Total booked one vessel from ARA to take of product to Immingham loading on the 5 June, likely related to maintenance works at Lindsey refinery.

Naphtha inventories in ARA jumped this week, rose. Naphtha stocks in the ARA region had rebounded from the 18-month lows recorded a week earlier. Demand from the petrochemical sector remained low as a result of scheduled maintenance at three northwest European ethylene crackers. Buying interest from gasoline blenders was also low.

Blenders typically add naphtha to gasoline in order to reduce the viscosity of the finished product, but the high inflows of finished-grade gasoline from outside the ARA area weighed on demand for the product. The general lack of buying interest, combined with the arrival of cargoes from Algeria, Norway, Russia, and the UK, brought northwest European naphtha’s discount to North Sea Dated crude to multi-year lows during the week to today.

Reporter: Robert Harvey

Gasoil inventories bolster ARA product stocks

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

Gasoil inventories rose to their highest level since October after reaching nine-week lows the prior week. The increase was prompted by increasing quantities arriving from the Mideast Gulf thanks to ample supply both in the Gulf itself and in Singapore, another centre of demand. Tankers also arrived in the ARA area, Germany, Latvia, Poland, Russia, the US and the UK. Rising inflows helped push northwest European French-diesel margins to crude to 14-month lows during the week to 30 May, down on the week. Tankers departed the ARA area for Denmark, the UK and west Africa.

Stocks of all other surveyed products fell, with gasoline and naphtha both recording double-digit falls in percentage terms. Problems with contaminated Russian crude in central Europe continued to support northwest European gasoline prices. The front-month June Eurobob contract closed to the August contract on 30 May, against an average for May so far. At the same time sustained backwardation along the gasoline forward curve continued to discourage storage of the product.

Relatively firm northwest European gasoline prices attracted seaborne cargoes into the ARA area from France, Latvia, Norway, Portugal, Russia, Spain, Sweden and the UK. But gasoline barge flows up the river Rhine rose to four times their normal levels owing to the widespread refining issues, and tankers were also booked to carry product from the ARA into northern Germany. Tankers also departed for Cuba, the UK, the US and west Africa.

Naphtha stocks in the ARA region fell to their lowest level since November 2017 as a result of firm demand from gasoline blenders and low demand in the area for the paraffinic naphtha used by petrochemical end-users. Northwest European paraffinic naphtha’s discount to North Sea Dated crude reached its lowest level since November 2014 on 29 May, pushed down by petrochemical outages around the continent and ample supply in the key Asia-Pacific export region. Cargoes likely comprised mainly of gasoline-blending grade material arrived from Finland, France, Norway, Russia, Sweden and the UK.

Jet fuel inventories fell back from two-year highs recorded the prior week, with demand increasing in line with seasonal expectations. Rising demand was signified by an increase in bookings of barges to carry the product, with pipeline capacity no longer sufficient to move the necessary volumes around northwest Europe. Tankers arrived in the ARA area from China and Russia and none departed.

Fuel oil inventories ticked downwards on the week, with the arrival of cargoes from Poland and the US nearly offsetting the departure of the VLCC ADS Serenade on 23 May. Stocks of fuel oil in Singapore remain at two-year highs, reducing the incentive for European market participants to accumulate cargoes in the ARA area for onward transit onboard larger vessels.

Reporter: Thomas Warner

ARA product stocks stable, gasoline rises

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

Gasoil, fuel oil lead ARA stocks rise

London, 16 May (Argus) — Weaker gasoil and fuel oil demand led a rise in overall oil product stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) region, and offset a decline in remaining product inventories, including gasoline.

Russian crude imports through the Druzhba pipeline to Germany were stopped on 25 April because of a contamination problem. The issue led to a draw in independent gasoline stocks in the ARA region after regional blenders looked to fill supply shorts in inland Europe, particularly Germany and Poland. A rare shipment took a gasoline cargo to a north German port from the ARA storage hub, according to consultancy Insights Global. Inland flows are typically carried by barge, or in the opposite direction for stock building. Shipments of gasoline from the Mediterranean region to northwest Europe have also surged in recent weeks following the pipeline issue.

Stronger prompt gasoline prices in northwest Europe have diminished arbitrage opportunities out of the region, while steep backwardation in the gasoline market is encouraging volumes to move out of storage. Supply is likely to tighten further as a technical issue yesterday forced the closure of Total’s Leuna refinery in southeastern Germany. The firm declared force majeure on rail deliveries of oil products from the facility.

This adds to the unplanned shutdown of Total’s Grandpuits and a turnaround at the firm’s Donges refineries. One of the two crude distillation units (CDUs) at BP’s Rotterdam refinery in the Netherlands, is also under maintenance.

Reduced diesel exports from Primorsk in May, following a decrease in scheduled loadings and bankruptcy proceedings at the Antipinsky refinery, have tightened the northwest European market. But the impact of the Druzhba pipeline issue on the diesel market has been less pronounced, largely as a result of relatively higher inventories and lower demand compared with gasoline. Gasoil stocks rose following arrivals from Russia, the US and Latvia, while product was exported to Argentina, Ireland, UK and west Africa.

Naphtha stocks in the ARA region fell from four-week highs the previous week, on steady demand and reduced incentive to bring product into the storage hub. Buying interest for open-specification product has come under downward pressure from unusually high levels of scheduled maintenance in the petrochemical sector. But demand for blending grades was supported by firm gasoline demand from inland destinations.

Jet fuel inventories remained steady in the week to 16 May on limited demand, as most imports from east of Suez arrived into UK and French ports. In addition, estimated arrivals into northwest Europe this month have declined to 1.5mn t, from 2mn t previously, following diversions to African destinations.

Weaker arbitrage economics to take fuel oil to the Asia-Pacific region from northwest Europe supported stock levels. Inventories in Singapore reached over a two-year high of in the week to 10 May. Despite unviable export economics, Gunvor chartered a very large crude carrier (VLCC) to load fuel oil in Rotterdam to Singapore.

Reporter: Rowena Caine

ARA independent product stocks steady

Argus – Oil product stocks held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub were stable on the week, with increasing fuel oil inventories offsetting declines in gasoil and gasoline.

Fuel oil inventories rose. Fuel oil inventories in Singapore reached 9-week highs on 18 April, inhibiting fresh eastbound bookings from the ARA area. But the VLCC Ridgebury Utik departed Rotterdam on 22 April for Singapore, having partially loaded during the prior week.

Stocks of Gasoil fell slightly this week on steady inland diesel demand, with gasoil booked on Rhine barges. Rising diesel prices and an anticipated seasonal fall in Rhine water levels prompted stockbuilding inland, putting downward pressure on ARA inventories.

Gasoline inventories fell because of higher transatlantic shipments. Tankers departed for the US, Nigeria, Brazil and Latin America. Demand for gasoline barges within the ARA area remained firm, but congestion in Amsterdam and Antwerp delayed gasoline component movements.

Naphtha stocks fell, with gasoline blenders the primary source of local demand. Planned maintenance at petrochemical sites in northwest Europe started to weigh on prices.

Jet fuel stocks reached their highest level in almost two years, buoyed by preparations for higher summer demand. Little movement was reported in the jet fuel barge market, with a single tanker booked to discharge along the Rhine.

Reporter: Thomas Warner