Category: ARA stocks

London, 18 October (Argus) — Oil product stocks held in independent storage within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by 4.1pc on the week today, as a result of a significant drop in gasoil volumes.

Stocks of gasoil rose fell by 5.3pc to their lowest in four weeks (see table). Cargoes arrived from Russia and departed for France, the UK and the Mediterranean. Demand from along the Rhine remained muted, particularly in the upper Rhine area.

Gasoline stocks fell by 7.1pc. Ample supply weighed blending margins, boosting outflows. Tankers left for Australia, Latin America, Singapore, the US and west Africa.

Fuel oil stocks rose slighlty. Tankers left the ARA area for Singapore and west Africa, and the Chios was still in ARA partially loaded today. Tankers arrived in the area from France, the Mediterranean, Latvia, Poland, Russia and Spain.

Naphtha stocks edged up, with demand from within Europe subdued amid narrow gasoline blending margins and transport issues on European waterways.

Reporter: Thomas Warner

London, 11 October (Argus) — Oil product stocks held in independent storage within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by 2.4pc from a week earlier, largely as a result of a significant drop in fuel oil volumes. Stock levels of other products were broadly stable.

Fuel oil stocks fell by 17.3pc to 1.03mn t, prompted by the loading and departure of several cargoes during the week to today. The Max Jacob, booked by Litasco to ship 130,000t of HSFO to Singapore loaded on 4 October and headed eastbound. The South Sea, booked by P66 to ship 130,000t of cracked fuel oil from Rotterdam to Singapore, likely started loading on 11 October. Tankers also left the ARA area for west Africa and the Mideast Gulf. Arbitrage economics to take high-sulphur material from northwest Europe to Asia Pacific strengthened in the past week. The Singapore second-month 380cst swap premium to HSFO cargo prices in northwest Europe averaged $33/t on 4-10 October, compared with an average spread of $29.70/t during the prior five trading days. A total of 430,000t of fuel oil was booked to Singapore this week.

Gasoline stocks fell by 25,000t to 1.06mn t, with outflows being supported by efforts to sell off stored summer-grade volumes. Cargoes arrived in the ARA area from Finland, Spain and the UK. Tankers left the area for the Mideast Gulf, Brazil, Latin America and the Mediterranean. Naphtha stocks fell by 11,000t to 341,000t, prompted by steady demand from inland petrochemical end-users and low volumes arriving in the area. Tankers arrived from Algeria, France and Portugal, and none were seen departing.

Stocks of gasoil rose by 102,000t to 3.04mn t, the highest level since mid-February 2018. Tankers arrived in the ARA area from Russia and Saudi Arabia, and departed for France, the Mediterranean and the UK. Low water levels on the river Rhine continued to impact barge traffic into Germany and France, bolstering interest in other forms of product transport. Cargo freight rates from the ARA continued to rise as a result, with some operators preferring to move material inland via other coastal outlets.

A single jet kerosene cargo arrived in the ARA area during the week to 11 October and a single tanker left for the UK. Inventories were effectively unchanged on the week at 674,000t. The Raysut partially offloaded in Rotterdam following a partial deposit into Fawley. The vessel had been sitting in the English Channel since 18 June, as the buyer was exercising some of its contract options by waiting to offload. Northwest European jet fuel demand has fallen since last week. Imports from east of Suez have been thin, with most arrivals entering UK and French ports.

Reporter: Thomas Warner

London, 27 September (Argus) — Oil product stocks held in independent storage within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose by 6.3pc from a week earlier because of large gains in fuel oil and gasoline inventories.

Fuel oil stocks rose by a fifth from a week earlier as product was put into storage to be loaded on two Singapore-bound VLCCs. One of these tankers — the Ridgebury Artois — has likely started loading fuel oil and could shortly leave for Singapore. No VLCCs left during the past week, while the Suezmax Sabine departed for Asia-Pacific with 130,000t of fuel oil. Bookings on the route to Singapore have picked up pace this week as export economics improved following a decline in Singapore’s inventories to multi-week lows. The ARA region imported fuel oil from the Black Sea, the Baltic Sea and Spain.

Gasoline stocks also rose, climbing by 10pc amid limited export options. US demand for gasoline has been weak since the conclusion of the summer driving season. This was reflected in last week’s increase in stocks, which came despite lower domestic production. During the week to 21 September, implied demand dropped to a 17 week low, and was also down year on year, according to EIA data. Exports to the Middle East are also likely to slow in the coming week as regional refineries come back from unplanned shutdowns. The ARA region exported gasoline to the Mideast Gulf and west Africa during the past week.

Lack of export options and comparatively low demand also led to an increase in naphtha stocks, which climbed 6pc from a week earlier. The European naphtha market is well-supplied, while demand from gasoline blenders is low. And arbitrage economics to Asia-Pacific are unworkable, largely because of ethylene cracker maintenance in that region. No naphtha was exported from the ARA region this week, while product arrived from Algeria, France, Spain and the UK.

And diesel inventories rose by less than 1pc this week. US diesel production also has fallen, which is likely to lead to a decline in exports to Europe in the coming weeks. In Europe, water levels on the Rhine remain low, keeping barge rates high and limiting inland shipments. The economics for importing diesel into Europe remain weak. But this could change if Rhine river water levels rise, allowing German demand to access ARA gasoil stocks, reducing supplies and pushing prices higher.

Jet fuel stocks bucked the trend, dropping by 14,000t, or 2pc because of comparatively high export volumes. The ARA region shipped the product to Denmark and the UK, while importing some jet fuel from the Mediterranean.

London, 20 September (Argus) — Oil products stored independently within the Amsterdam-Rotterdam-Antwerp (ARA) hub declined by nearly 2pc over the past week because of a large drop in fuel oil inventories.

Fuel oil stocks shed 143,000t — or 11.2pc — during the past week as imports of Russian fuel oil from the Baltic Sea continued to fall. The decline came despite challenging arbitrage economics to Singapore. No vessels bound for Asia-Pacific have loaded fuel oil from Rotterdam during the past week. The VLCC Ridgebury Artois, booked to ship 270,000t of fuel oil to Singapore earlier this month, has arrived in Rotterdam. Some fuel oil was exported to the Mediterranean to supply the local bunkering market and to the Middle East during the past week.

Jet fuel stocks also declined, but were down just 1pc week on week. The European market is generally well supplied, while demand has weakened following the conclusion of the peak summer flying season. But most of the product imported from east of Suez this week was discharged into ports in the UK. One vessel, the Polar Bright, chartered by BP, arrived into Rotterdam on 16 September with 90,000t of jet fuel from Ruwais, but has yet to offload this material.

Gasoil stocks rose by around 1pc during the past week. Inland shipments to the German market, which is affected by supply shortages, remained depressed because of low water levels on the Rhine. Transatlantic shipments of diesel have not fallen as much as expected by market participants in September from the prior month because of high US production and stocks. The Asian diesel market is tight, which is likely to draw diesel from the Mideast Gulf, reducing the amount of material available to be exported to Europe from that region.

Gasoline inventories also rose by around 1pc week on week. US demand for European gasoline has dropped following the conclusion of the summer driving season, but buying interest in west Africa and the Middle East remains firm, largely offsetting the impact of lower transatlantic shipments. The ARA region imported gasoline from Denmark, France, the Mediterranean and the UK in the past week.

Likewise, naphtha stocks rose marginally during the period, adding just 2,000t. Demand from gasoline blenders and the petrochemicals sector has softened during the past two weeks, keeping more product in storage. Some naphtha was shipped to Denmark, likely to use as a feedstock to produce gasoline.

London, 6 September (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose by 10.1pc this week to 5.67mn t, with stock builds for all recorded products.

Fuel oil inventories recorded the sharpest rise, increasing by 22.8pc to 1.26mn t. Tankers arrived in the ARA area from Latvia, Russia and the US and departed for Denmark and the UK. Departures of fuel oil-laden VLCCs for Singapore customarily offers the single biggest outlet for stored fuel oil volumes, but no such loadings took place in the week to today and none are scheduled. Fuel oil stocks in Singapore recently hit a six-week high, impacting demand for European volumes.

Gasoline stocks rose by 14.9pc on the week to 870,000t, rebounding after reaching a 21-month low the previous week. Production of winter-grade gasoline continued apace, bolstering demand for storage tank space. Low Rhine water levels continued to affect the market, with gasoline demand from inland buyers pulling increasing volumes up river. Inland gasoline production has suffered in recent weeks from refinery outages and high blending component prices resulting from high barge freight rates. Interest in European gasoline was firm from the US. Tankers arrived in the area from France, Italy, Portugal, Russia and the UK. Tankers departed the region for Argentina, Latin America, the US and west Africa.

Naphtha stocks rose by 5.2pc to 264,000t, after falling heavily during the two prior weeks. Tankers arrived from Algeria, Poland, Portugal, Russia, Spain and the UK. None were recorded leaving the area, amid firm demand from gasoline blenders as well as petrochemical end users.

Independent ARA stocks of gasoil rose by 4.1pc on the week to 2.54mn t. Diesel remained the key demand driver for middle distillates, with heating oil buyers continuing to await falls in barge freight rates. Tankers arrived from Russia, the US, India and Saudi Arabia.

Jet fuel stocks rose by 8.4pc to 734,000t, a 42-week high. Inflows have remained at high levels despite the end of the peak demand season. But the rise in inventories was also bolstered by delays in the unloading of vessels arriving during the prior week. Tankers arrived from the Mideast Gulf, India and the Mediterranean and one left for the UK.

Reporter: Thomas Warner

London, 30 August (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell nearly 5pc this week to 5.15mn t, prompted by stock draws on all major products except jet fuel.

Gasoline stocks fell by 1.9pc to 757,000t, the lowest level since November 2016. The European market is preparing to switch to winter-specification gasoline in September, and is shedding summer-grade volumes. Outflows were notably high to North America, Latin America and west Africa.

Spot booking for tankers loading during the week to today were around twice the level recorded over the prior week. Tankers left for the Mideast Gulf, the Americas and west Africa. Tankers arrived from the Baltic region, Denmark, Finland, France, Sweden and the UK. Low water levels on the Rhine river inhibited barge traffic from inland refineries to the ARA area.

Naphtha stocks fell heavily for a second consecutive week, to a 16-week low of 251,000t. The reduction was caused by good demand from gasoline blenders and petrochemical end-users in Europe. Naphtha flows from ARA into the continent have proven more resilient to high barge freight rates than have flows of gasoline and gasoil, as most end-users are unable to significantly alter feedstock slates. Tankers arrived from Latvia, Portugal, Russia and Spain, and none were recorded leaving the area.

Gasoil stocks fell by 5.6pc to 2.44mn t, the lowest since early April. Rhine water levels rose marginally in recent days, potentially allowing an increase in product flows. German 10ppm and 50ppm diesel barges have found support over the last week. The former traded recently at 25¢/t discounts to Ice September gasoil, compared with discounts of $1/t around a week earlier. German 50ppm barges assessed differentials climbed to discounts of $7.50/t to Ice September gasoil, compared with discounts of $10.50/t a week earlier. Tankers left ARA for France, Sweden and west Africa.

Jet fuel stocks rose by 4.6pc to 677,000t. The STI Selatar and Dubai Brilliance arrived at Rotterdam at the end of last week, each carrying 90,000t of jet fuel from Yangpu, China, and Ruwais, UAE, respectively. Shell exported 30,000t of jet from Rotterdam on the Seashark, which arrived at Copenhagen today. High northwest European import volumes from east of Suez last week and this week have not been reflected in stock levels, suggesting sufficient demand to absorb incoming volumes. A slowdown in arrivals after next week, alongside the start of the refinery turnaround season, could see the market tighten.

Fuel oil inventories fell by 7.1pc to 1.03mn t. Tankers left ARA for the Mideast Gulf and Mediterranean regions during the week, and arrived from France and Russia.

Reporter: Thomas Warner

London, 23 August (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by 1.3pc this week to 5.41mn t, prompted by a sharp fall in gasoline and naphtha inventories.

Gasoline stocks fell by 14.3pc on the week to 772,000t, the lowest level recorded since October 2017. Tankers left the ARA area for Argentina, Canada, Puerto Rico, the US and west Africa. High gasoline demand from inland Germany, resulting from unplanned refinery outages, drew in volumes from the ARA area and deepened the stock draw. Tankers arrived from Norway, Poland, Sweden and the UK.

Naphtha stocks also fell heavily, dropping by 17pc on the week to 307,000t. The reduction in inventories was caused by steady demand from key outlets and a lack of incoming tankers. No cargoes arrived from the Mediterranean, with the sole arriving tanker coming from Denmark. None were recorded leaving the area. Demand from inland petrochemical end-users recovered, with falling temperatures enabling steam cracker operators to return to running their machinery at full capacity.

Gasoil stocks rose by 3.3pc to 2.59mn t, the highest level since the start of April, as low Rhine water levels continued to constrain product movement in the region. Typically, weekly gasoil barge inflows to Germany total around 160,000t but they amounted to less than 90,000t during the week today according to PJK International’s Rhine Flow Service. The influx of middle distillates into Europe from both transatlantic and east of Suez refiners has also been firm, with market participants pegging total arrivals into Europe at some 3.5mn-4mn t in August. The Yasa Hawk is currently on route to Amsterdam, laden with a 40,000t diesel cargo, according to Argus tracking. The tanker departed Texas City on the US Gulf coast on 15 August.

Jet fuel stocks fell by 1.1pc to 647,000t. At least 180,000t of jet fuel arrived into Rotterdam today on vessels from China and the UAE, although neither vessel had offloaded at the time of writing. Imports into northwest Europe from east of Suez and the US are set to be high for the rest of August. But peak summer buying interest is fading as high trade activity throughout the month has mostly filled August demand. Consequently, stocks are expected to rise. Shell has provisionally booked at least three tankers to take ARA jet fuel to Scandinavia at the end of the month.

Fuel oil inventories increased by 4.5pc to 1.1mn t, amid low outflows. A single suezmax left the ARA area for Singapore during the week to today, and tankers arrived in the area from France and Russia.

Reporter: Thomas Warner

London, 2 August (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by 0.6pc this week to 5.67mn t, prompted by the departure of a 270,000t fuel oil cargo and rising naphtha consumption.

The departure of the VLCC Fida on 27 July weighed on fuel oil stocks, which fell by 10.3pc to 1.2mn t today. The 270,000t cargo is set to discharge in Ningbo-Zhoushan in China, according to vessel tracking data. A smaller cargo also left for the Mideast Gulf. Fuel oil cargoes arrived from the Black Sea, Finland, France, Poland and Russia.

Naphtha stocks also fell heavily on the week. Inventories declined by 10.6pc to 328,000t on an uptick in demand from gasoline blenders in the ARA region and continued firm demand from petrochemical end-users. Rising demand and ongoing supply tightness in the Mediterranean region have strengthened northwest European naphtha pricing, narrowing its discount to benchmark North Sea Dated to 69¢/bl on 1 August from $1.25/bl a week earlier.

Gasoline stocks rose by 3.1pc week on week to 974,000t, with rising prices in the ARA area attracting cargoes and impacting outflows. Tankers arrived from Denmark, France, Italy, Spain and Sweden. European gasoline was shipped to Canada, Mexico, Puerto Rico, the US and west Africa. But the outgoing cargoes were generally smaller than those that arrived. Fresh fixtures emerged during the week for delivery to west Africa and the US, where demand is firming.

Jet fuel stocks rose by 5pc on the week to 692,000t. The Kleon arrived into Rotterdam on 27 July with 90,000t of jet fuel from Ruwais. The Nord Dolphin arrived into Antwerp yesterday, also with 90,000t of jet fuel from Ruwais, but does not yet appear to have unloaded. Seasonally strong demand from the aviation sector brought jet fuel barge and pipeline utilisation to near maximum levels. A single cargo left the ARA area for the UK.

Gasoil stocks increased by 3.9pc to 2.49mn t. Cargoes continued to arrive from the Mideast Gulf, but high Rhine freight rates have impacted demand from the European hinterland. Demand from the agricultural and heating sectors was already lower owing to the high temperatures and lack of rain, which have affected harvests.

Reporter: Thomas Warner

London, 26 July (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub declined this week because of a large drop in gasoline inventories.

Gasoline stocks dropped by more than 12pc week on week, largely because of a high level of exports. European gasoline was shipped to the Mideast Gulf, Latin America, the US and west Africa, where demand rose significantly compared with the prior week. Exporters have been facing increasingly unworkable spot arbitrage economics between Europe and the US. But stocks in the US dropped to the lowest level since 11 May this week, which will likely stimulate transatlantic exports.

Fuel oil stocks also fell, dropping by 2.5pc from the prior week. The VLCC Nisalah finished loading fuel oil from Rotterdam and departed for Singapore, resulting in a decline in inventories. Imported volumes increased, partially offsetting the impact of exports on stocks. No new VLCC bookings have surfaced so far this week as the economics for exporting fuel oil to Asia-Pacific weakened.

Jet fuel stocks dropped by 5pc from the prior week as no product was imported and demand remained strong. Arrivals from east of Suez and the US were offloaded into other ports in northwest Europe, including Le Havre.

Gasoil stocks increased despite unviable US Gulf coast diesel arbitrage economics to northwest Europe. Product continued to arrive from the Mideast Gulf and a flurry of MR tanker bookings have emerged in recent days to load Baltic diesel for European discharge, which is likely to keep the European gasoil market well-supplied. Inland demand remains firm, but persistently low Rhine water levels have reduced barge loading capacity and drove barge freight rates higher, contributing to the increase in stocks.

And naphtha stocks rose marginally, climbing by just 1,000t on the week. The ARA region imported the product from France, Portugal, Sweden and the UK during the week. Demand from European gasoline blenders rose slightly, offsetting the impact of comparatively high imports.

London, 19 July (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose by 6pc week on week to 5.8mn t today.

The increase was mostly driven by a 13pc rise in total fuel oil inventories, but stocks of most other oil product rose as barge freight rates continue to rise, weighing on demand. Barge freight rates on the Rotterdam-Karlsruhe route increased by 26pc on the week to $24/t and are now at their highest level since at least July 2017. Jet fuel stocks fell amid high seasonal demand.

Fuel oil inventories rose with no very large crude carriers (VLCCs) departing the area in the week to today. The VLCC Stallion, chartered by South Korea’s SK Energy to carry a 270,000t cargo to Singapore, was loading during the reporting period. The VLCC Fida, chartered by Shell to also carry a 270,000t cargo to Singapore, began loading on 14 July. Smaller cargoes left the area for the Mideast Gulf and the Mediterranean. Stored volumes were supported by cargoes arriving from the Black Sea, France, Russia, Spain and the UAE.

Gasoil inventories rose by 2.5pc, supported by an influx of diesel arriving from the UAE on board the VLCC Stallion. The newbuild was chartered by Asia-Pacific trading firm Winson Oil to carry a 270,000t ultra-low sulphur diesel (ULSD) cargo to northwest Europe from Fujairah, arriving 10 July. The tanker partially discharged via ship-to-ship transfer offshore Southwold in the UK, before unloading fully in the port of Rotterdam, and being chartered to carry fuel oil to Singapore.

As with other products, the high Rhine barge freight rates impacted gasoil outflows. Barge freight rates on at least one route rose to double the cost of the equivalent pipeline transfer. Cargoes arrived from Russia, Saudi Arabia and the UAE.

Gasoline inventories rose by 9pc. Transatlantic outflows remained at the levels seen in recent weeks but outgoing volumes to west Africa were lower on the week. Cargoes departed the ARA area for Canada, Latin America, the US and west Africa. Cargoes arrived from Finland, France, Norway and the UK.

Naphtha stocks rose by 3pc, supported by rising volumes of cargo arriving from Algeria. Demand from inland petrochemical end-users firmed on the week as falls in underlying crude prices boosted cracking margins. Cargoes arrived from Algeria, France, Portugal, Russia and the UK. None left the area during the reporting period.

Jet kerosine stocks fell by 1.8pc as demand remained strong through the peak summer flying season. And buying interest for jet fuel barges in the ARA increased, with market participants seeking to move volumes to regional airports. The Sti Precision arrived into Rotterdam on 13 July with 65,000t of jet fuel from Bahrain. A single cargo departed the ARA hub for the UK.

Reporter: Thomas Warner