Category: ARA stocks

Oil product stocks held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell in the week to 11 April, with gasoline the only product to record a stockbuild.

Naphtha stocks saw the largest decline in percentage terms, with independent inventories reaching 11-week lows, data from consultancy PJK show. Vessels carrying naphtha offloaded in the ARA region from Algeria and other northern and eastern European ports, and cargo was exported to Asia-Pacific. Inland demand rose, as German firm BASF’s petrochemical facility in Ludwigshafen drew barges.

Strong blending demand for naphtha, coupled with firm Eurobob oxy gasoline barge liquidity on fob ARA barges, may have contributed to a regional gasoline stockbuild ahead of loading dates. Eurobob oxy gasoline barges changed hands on 1-5 April for loading in the trading hub 2-8 days ahead, compared with the prior week period. This may have offset high export levels as arbitrage economics remain viable on gasoline routes to the US, Mexico and Mideast Gulf, where refinery maintenance is drawing additional cargoes. Exports to the US were lower than expected, but are likely to pick up as US gasoline inventories fell last week by their largest weekly volume in more than a year, according to the EIA.

A fall in scheduled exports of low-sulphur diesel from Russia’s Baltic port of Primorsk resulted in lower gasoil stocks held independently in the ARA region. Furthermore, mild weather supported diesel demand for driving inland, with buying interest rising from France and Switzerland.

No jet fuel vessels arrived in the ARA region from east of Suez or the US in the week to 11 April, while a cargo was exported to the UK. At least one vessel carrying jet fuel was scheduled to arrive in Amsterdam on 9 April but has not yet offloaded. And demand along the Rhine was strong ahead of the peak-summer flying season, with PJK recording the largest weekly outflow by barge since June.

But jet fuel stocks on a four-week rolling average basis remained at their highest since the end of November. And levels are expected to rise further. Jet fuel imports to northwest Europe from east of Suez and the US are set to reach this month — similar to March levels. Demand is expected to remain thin, with off-peak buying interest in April more than March levels. Demand in May is only expected to rise from April.

Fuel oil arrivals to the ARA region originated from France, Lithuania, Poland, Russia and the UK. Eastbound flows continue despite weaker economics, with the Koch-chartered Suezmax Nordic Mistral departing Rotterdam for Singapore. And exports to the Mideast Gulf continued for summer power generation.

Reporter: Rowena Caine

Argus — Oil product stocks held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose in the week to 21 March, as higher gasoil and jet fuel stocks offset declines in other products.

Gasoil inventories hit 21-week highs following arrivals from India, Russia and the US, data from consultancy PJK showed. The Primorsk diesel-loading schedule for March has been robust. And while some inland Rhine demand emerged, mild European temperatures are generally curbing heating oil requirements, whilst seasonal demand from the agricultural sector has yet to materialise. Gasoil was exported from the ARA region to the UK during the week.

Jet fuel stocks rose following the arrival of the Golden Shiner, carrying product from the Mideast Gulf. Viable arbitrage economics has brought jet fuel into Europe from the east of Suez and the US this month. Imports are set to slow in the coming weeks. At least 1.3mn t has been booked on this route so far for April, but most arrivals are scheduled for the second half of the month. The market appears to be prepared for lower import levels, however, with stocks currently at 26-week highs. Contango in underlying Ice gasoil futures over the past week, and in the swaps structure for most of the year, has encouraged firms to put jet fuel into tanks.

Fuel oil inventories fell to one-year lows, as a backwardated swaps structure ahead of the International Maritime Organisation’s (IMO) 2020 sulphur cap has supported selling interest and drained tanks in recent months. Fresh export demand to the US also weighed on inventories across the whole of Europe, as the fuel oil market tightened in the US ahead of sanctions against Venezuela — the largest fuel oil supplier of the US. The Shell-chartered Maran Canopus is currently loading in Rotterdam to take cracked fuel oil to Singapore. Fuel oil arrived into the ARA trading hub from France, Russia and the UK during the week, and was exported to Suez for orders.

An uptick in demand from west Africa is helping clear stocks of European gasoline. Inventories in west Africa’s largest demand hub, Nigeria, have fallen by around 20pc since the presidential election last month. Tankers loaded with product were provisionally booked with west African discharge options between 9-15 March, shipping reports show, the highest weekly tally since October last year. Viable arbitrage economics to send gasoline to the US from northwest Europe led to some cargo loadings from the ARA region in the past week. But these were lower than expected, as many fixtures booked on this route will load towards the end of the month.

Naphtha arrived into the trading hub from Estonia, France, Russia, the UK and the US during the week. A cargo exported ARA naphtha to Brazil. Buying interest from the gasoline blending sectors in northwest Europe kept Rhine demand steady.

Reporter: Rowena Caine

(Bloomberg) – ARA fuel oil stockpiles slumped to their
lowest level in a year on higher exports to Asia and West
Africa, according to PJK International.
* Fuel oil stockpiles fell in past week, lowest
since March 15 of last year
** VL Prime and Nave Electron, both VLCCs, loaded in Rotterdam
within past week and sailed for Singapore; a third vessel,
Suezmax Summit Spirit, also loaded fuel oil for West Africa,
says Lars Van Wageningen, operations manager at PJK
* Naphtha stockpiles rose, highest since Oct. 25
** Higher imports in past week, including Suezmax shipment from
Algeria; some volumes could be destined for gasoline blending:
Van Wageningen
* Jet fuel stockpiles rose, highest since Jan. 31
** Imports arrived from U.A.E. in past week, while flight
cancellations in Amsterdam amid bad weather may have affected
demand: Van Wageningen
* Gasoil stockpiles drop for third week, fell;
lowest since Feb. 7; lowest for time of year since 2014
** While past week saw a lot of imports in ARA, most volumes
went onwards to other parts of NW Europe as well as to West
Africa, Van Wageningen says; notes that ICE gasoil deliveries,
to be reported next week, will offer signal on level of demand
for physical transport inland along the Rhine

Reporter: Bill Lehane

London, 7 March (Argus) — Oil product stocks held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose slightly owing to higher naphtha and jet fuel inventories.

Naphtha stocks climbed to their highest level since 25 October. The northwest European naphtha’s discount to benchmark North Sea Dated crude narrowed by $3.75/bl to $4.93/bl in the month to yesterday, reflecting firming demand in the region. Prices have also been supported by a rise in outflows to the Asia-Pacific region, where demand has also been firmer. Tankers arrived in the ARA area from Algeria, Estonia, France, Russia, Spain and the UK.

Jet fuel stocks rose. The Zefyros arrived from the UAE in the past week and offloaded a 35,000t cargo. Tankers departed for the UK and Ireland. Northwest Europe remains an attractive destination for jet fuel cargoes arriving from east of Suez amid ample supply in the Mediterranean and rising supply in the US.

Gasoline inventories were broadly stable, but higher volumes flowed in and out of the area. Northwest European outflows to the US have been supported by falling gasoline stocks on the US Atlantic coast. They fell by 4.2mn bl to 250.7mn bl in the week to 1 March, according to the most recent data from the EIA.

Gasoil inventories were stable too. Overall barge flows to the European hinterland were steady on the week but increasing volumes heading to storage terminals in Strasbourg caused some congestion in the area.

Fuel oil inventories fell to their lowest since 15 March 2018. The two very large crude carriers (VLCCs) Nave Electron and VL Prime departed Rotterdam for Singapore in the past week, while smaller tankers left for west Africa.

Reporter: Thomas Warner

London, 28 February (Argus) — Oil product stocks held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell for the third consecutive week to nine-week lows.

Inventories of all products fell. Naphtha stocks recorded the largest reduction in percentage terms, decreasing to 219,000t. The Ablianideparted the region for Venezuela, as part of the country’s efforts to replace naphtha volumes lost to US sanctions. Barge flows to inland end users fell week on week amid rising freight rates on the Rhine. Tankers arrived in the ARA area from France, Russia and Spain.

Fuel oil inventories fell to 911,000t and economics to ship European product to the Asia-Pacific region remained viable, according to data from consultancy PJK. A single Suezmax tanker departed the area for Singapore, but the very large crude carriers (VLCCs) Nave Electron and VL Prime are awaiting loading in Rotterdam.

Jet fuel stocks fell to 612,000t. The Zefyros arrived in Rotterdam from the Mideast Gulf on 26 February and is due to offload a 35,000t cargo today. A single tanker departed for the UK. Jet kerosene continues to arrive in northwest Europe from east of Suez, but tends to discharge in the UK and France.

Gasoline inventories fell to 1.1mn t, amid rising outflows to the US Atlantic coast. Stored volumes have been falling steadily since reaching 11-month highs in January. Tankers departed the ARA area for China, Latin America, Singapore, the US and west Africa. Tankers arrived from France, the Mediterranean, Norway and Sweden.

Gasoil inventories fell to 2.4mn t. Demand from inland fell slightly week on week, again affected by rising Rhine freight rates. Tankers arrived from Poland and Russia, and departed for the Mediterranean and west Africa. Outflows were supported by ample stored volumes. Inventories rose by around 600,000t between mid-December and mid-February to 2.5mn t but have fallen over the last two weeks.

Reporter: Thomas Warner

London, 21 February (Argus) — Oil product stocks held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell to eight-week lows today.

Fuel oil stocks recorded the largest fall in percentage terms as economics to ship European product to the Asia-Pacific region remained viable, according to data from consultancy PJK. The very large crude carrier (VLCC) Xin Lian Yang — chartered by Petroineos — departed Rotterdam on 17 February with 270,000t of fuel oil for Singapore. Trafigura booked the VL Prime that will soon load 270,000t of cracked fuel oil from Rotterdam, with the same destination. ARA fuel oil exports offset import levels from France, Poland, Russia and the UK.

Independent gasoline stocks fell to their lowest since 20 December. Cargoes took some gasoline from the ARA region to the US despite unworkable arbitrage economics. The decline came mostly from exports to Latin America, the Mediterranean, west Africa, east of Suez and Suez for orders.

Product restocking in Germany and Switzerland, declining Rhine water levels and a ban on single-hull barges has limited vessel availability across refined product markets. Consequently, market participants are loading gasoline in Antwerp on cargoes to discharge in the Amsterdam area, where most of the blending activity for the European market takes place.

In the gasoil and naphtha markets, firms are looking to transport product inland before declining Rhine water levels further restrict barge loading.

Inland demand for gasoil was at its highest in over one year, PJK said. This offset high import levels from Russia, the UK and the US. But gasoil inventories remain higher than a year earlier, and at their highest since early November on a four-week rolling average basis.

Trading firms are refilling stocks that Germany’s EBV strategic reserve released when Rhine water levels were low in October. But activity could slow as last week EBV’s diesel stocks were already replenished.

Restocking activity on the jet fuel market has already decreased, with just one barge booked to take product inland this week.

A single cargo arrived into Rotterdam on 18 February with 65,000t of jet fuel from Qatar on the Cielo Di Rotterdam. A smaller vessel arrived into the ARA trading hub from Finland. And a tanker exported product to the UK, where there is firm buying interest to blend jet fuel with diesel to improve cold properties.

Demand to move naphtha inland from the ARA region was strong for stocking ahead of planned petrochemical maintenance from mid-April. Naphtha arrived into the trading-hub from Algeria and from within Europe, while no outgoing cargoes were reported.

Reporter: Rowena Caine

Oil product stocks held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose marginally during the past week, prompted by gains in gasoil and fuel oil inventories.

Fuel oil stocks climbed this week on week because of higher imports. The ARA region received fuel oil from Finland, France, Latvia, Poland, Russia, the US and the UK. One tanker left Rotterdam for west Africa with a fuel oil cargo to supply the local bunkering market. Falling freight rates on the Europe to Singapore route boosted demand for very large crude carrier (VLCC) cargoes.

Diesel stocks also rose during the past week. The economics for importing diesel form the Middle East to Europe firmed last week, stimulating flows from the east. Meanwhile, cold weather in the US bolstered demand for diesel, making less material available to be shipped to Europe. It also pushed prices higher, denting the economics for exporting the product.

Gasoline stocks fell during the past week. The northwest European and Mediterranean markets remain well-supplied with gasoline. US gasoline stocks have been rising, dampening demand for European products. The latest report from the EIA showed that stocks on the Atlantic coast — crucial for arbitrage economics between the US and Europe — hit the highest level since February 2017 during the week to 1 February. Likewise, the outlook for exports to the Middle East is bleak, owing to the restart of the 127,000 b/d residual fluid catalytic cracker at the UAE’s Ruwais-2 refinery following a two-year shutdown.

The European naphtha market has also been oversupplied as demand for the product from gasoline blenders has been at a low level because of weak margins. Demand for naphtha from the petrochemicals sector has also been soft as rival feedstock propane has been more competitive. But stocks fell marginally as some product was exported to South Korea.

And jet fuel stocks fell slightly from the prior week as the ARA region exported product to the UK and Ireland, while some jet fuel was imported from India. The tanker N Mars arrived into Rotterdam on 1 February with 60,000t of jet fuel from India.

Reporter: Sergei Balashov

London, 31 January (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell on the week, with a sharp fall in fuel oil inventories outweighing stock rises in every other recorded product.

Fuel oil inventories fell by 27pc week on week to their lowest level since 29 November 2018. Falling stocks levels in Asia-Pacific and lower freight rates in January helped open arbitrage routes and stimulated bookings of several very large crude carriers (VLCCs). No VLCCs were recorded leaving the ARA area during the week to today but at least three Suezmax and one Aframax tanker departed the area for the Mediterranean and west Africa. Incoming tankers arrived from Poland, Russia and the UK.

Naphtha inventories increased, rising from a low base after reaching their lowest level since November 2017 a week earlier. Tankers arrived from Algeria, Russia, Spain and the UK and none were recorded leaving. Vitol booked the Star Energy to carry a 120,000t cargo from the ARA area to Asia-Pacific with loading set for 31 January.

Gasoil inventories rose, increasing for the fourth consecutive week to reach the highest level since the week to 8 November 2018. Firm demand for heating fuels bolstered demand from end-users in the northwest European hinterland, supporting Rhine barge flows. Tankers arrived from Lithuania, Poland, Russia, Saudi Arabia and the US. Tankers departed for Denmark, France and the UK.

Gasoline stocks rose, remaining around the nine-month high recorded in recent weeks. Ample supply in north America continues to exert downward pressure on demand for northwest European volumes, but outflows remained healthy with tankers departing for the Mideast Gulf, Brazil, the US, west Africa and to Suez for orders. Tankers arrived from France, Italy, Spain and the UK carrying a variety of different grades of gasoline.

Jet fuel stocks rose by 5pc to reach a 16-week high amid firm demand relative to other regions. Ample supply in the Mediterranean and US Atlantic and Gulf coasts, coupled with an influx of cargoes arriving from east of Suez will continue to jet fuel flows into northwest Europe. Tankers arrived from the Mideast Gulf and South Korea, and departed for the UK.

Reporter: Tom Warner

London, 28 January (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub were steady on the week.

Gasoil inventories rose, increasing for the third consecutive week to reach the highest level since the week to 8 November 2018. Firm heating oil demand from end-users in the northwest European hinterland supported Rhine barge flows.

Fuel oil inventories fell by 8.8pc week on week. The very large crude carrier (VLCC) As Suwayq departed Rotterdam for Singapore carrying a 270,000t cargo.

Gasoline stocks fell, but remained around the nine-month high recorded in recent weeks. The four-week rolling average of gasoline inventories hit its highest level since Argus began recording PJK’s ARA stocks data in 2011, at 1.37mn t. Ample and rising supply in north America has significantly reduced demand from the US Atlantic and Gulf coasts, limiting outflow opportunities for northwest European volumes. Tankers arrived from Finland, Spain, Russia, Sweden and the UK. Tankers left the area for Canada, the Mediterranean, the US and to Suez for orders.

Naphtha inventories fell to reach their lowest since November 2017, as northwest European end-users continued to move volumes inland ahead of anticipated falls in Rhine water levels. Demand from gasoline blenders remained subdued.

Jet fuel stocks rose to reach a seven-week high amid seasonally low demand. A single tanker arrived in the region from the UAE and none departed. Ample supply in the Mediterranean and US east coast regions is likely to make northwest Europe a more attractive destination for cargoes arriving from the east of Suez in the coming weeks.

Reporter: Tom Warner

London – Oil product volumes held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub were broadly unchanged on the week today.

Gasoil inventories rose this week. Demand from the European hinterland rose week on week to reach its highest level since May 2018, with falling temperatures continuing to bolster demand for heating oil. But the increase in barge flows was more than offset by an rise in seaborne volumes from from Latvia, Russia and the US, for the second consecutive week.

Fuel oil inventories fell week on week. The very large crude carrier (VLCC) As Suwayq remained in Rotterdam loading a 270,000t for Singapore delivery. Three eastbound VLCC bookings have emerged so far during January, compared with none in December. This is mostly a result of falling freight rates, and high inventories in Europe compared with the Asia-Pacific region. A single Suezmax departed for Singapore during the week to today.

Gasoline stocks remained around the nine-month high recorded in recent weeks. Ample supply in north America weighed on demand from the US Atlantic coast and the US Gulf, weighing on northwest European prices and stimulating an increase in tanker bookings for destinations east of Suez.

Naphtha inventories fell as a result of firm demand from inland petrochemical end-users. An anticipated fall in Rhine water levels helped add urgency to naphtha buying from the petrochemical sector this week, but demand from gasoline blenders remained low on ample supply in key markets.

Jet fuel stocks rose amid lower demand week on week. No jet barges were recorded leaving ARA for discharge along the Rhine, and the Long Range 2 (LR2) tanker SFL Trinity arrived in Rotterdam carrying a 90,000t cargo from Ruwais on 15 January. It was not clear whether the entire cargo was offloaded.

Reporter: Tom Warner