Category: ARA stocks

Independently-held refined product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area rose during the week, reaching their highest since September 2021.

Stocks of all surveyed products rose on the week, with naphtha inventories rising by more than any other. The European naphtha market has been chronically oversupplied throughout the summer, and low water levels on the river Rhine have made it more difficult to move naphtha to destinations inland.

The virtual impossibility of moving significant quantities of refined products inland has freed up some barge capacity over the past week, cooling a rise in freight that dates back to the beginning of July.

Gasoline blending activity in the ARA area rose on the week, albeit from a relatively low base. Arbitrage outflows to the US and west Africa slowed slightly, but outflows to the Mediterranean and other European destinations increased.

The increase in the number of available barges in the ARA helped reduce some of the congestion that has slowed production this summer.

Reporter: Thomas Warner

Independently-held refined product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area fell during the week to 10 August, down from the 11-month highs recorded a week earlier.

The overall fall was led by a drop in stocks of light ends naphtha and gasoline.

The week on week fall in gasoline inventories was the first recorded since June, and was prompted by an increase in flows to west Africa.

Blending activity in the ARA area appeared to increase on the week, but not sufficiently to offset the rise in outflows. Gasoline stocks had been building throughout the summer, supported by a relatively lacklustre summer driving season in the northern hemisphere caused by high retail prices.

Naphtha stocks fell on the week to reach their lowest since June, having been at their highest since March 2021 just a week earlier.

Petrochemical end-users have been rushing to move naphtha inland on barges in response to tightening loading restrictions on the river Rhine. Water levels on the river are now approaching the all-time lows recorded in October 2018, and freight rates from the ARA to upper-Rhine destinations like Switzerland are already at all-time highs.

But the increasing use of smaller barges with lesser draughts to carry product inland has freed up some larger capacity barges in the ARA area, bringing prices on some intra-ARA routes down from recent four-month highs.

Reporter: Thomas Warner

Independently-held refined product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area rose during the week to 3 August to reach their highest since September 2021.

The overall rise was led by the light ends and fuel oil. Fuel oil inventories tend to fluctuate more week on week than the other surveyed product groups, as the cargo sizes involved are larger.

But gasoline and naphtha inventories both rose for more fundamental reasons, with high refinery runs in Europe and low export demand for both products.

Gasoline and naphtha stocks both reached their highest since March 2021. Flows of gasoline from northwest Europe to the US are slowing amid rising gasoline inventories across the Atlantic.

And the cost of blending new finished-grade gasoline cargoes is rising, as barges from the Amsterdam-Rotterdam-Antwerp area reposition to serve the Rhine market.

Low water levels on the Rhine mean that barges carrying product from the ARA past the Kaub bottleneck can currently only load around a quarter of the usual, and there is little sign of any imminent increase in rainfall in the coming weeks.

Naphtha stocks rose as a result of the slowdown in gasoline blending, but also from the continued arrival of cargoes from around Europe. Naphtha from the Black Sea typically flowed to Asia-Pacific or the Mediterranean prior to the conflict in Ukraine, but reluctance by many in Asia to touch Russian cargoes has created a new trade flow from Novorossiysk into ARA storage.

Reporter: Thomas Warner

Independently-held oil product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area rose during the week to 20 July, despite a scramble to move gasoil inland.

Stocks at ARA rose, according to data from consultancy Insights Global, remaining close to the average for the year so far.

Rising gasoline, naphtha and fuel oil inventories offset falls in middle distillates. The fall in gasoil stocks was the result of a scramble to move diesel inland, amid low water levels on the river Rhine.

Falling water levels have sent Rhine freight rates soaring, with costs on the Rotterdam-Basel route trebling since the beginning of July. Low water supports freight rates because charterers can need several barges to carry volumes normally moveable with just one vessel.

But a lack of supply at storage facilities inland gives end-users little choice but to pay the increasingly high freight rates in order to prevent shortages.

Naphtha stocks rose to their highest since January 2021, as a slump in transatlantic gasoline exports reduced demand for naphtha as a blending component. Naphtha’s flat market structure, relative to other products, means that storing naphtha in tank is the best option for many traders.

Naphtha inventories are also receiving support from low demand for Russian-origin cargoes, many of which have moved into the ARA from the Baltic and Black Seas since the invasion of Ukraine.

Reporter: Thomas Warner, July 21, 2022

Independently-held oil product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area rose in the week to 13 July, as it became increasingly difficult to move refined product barges to destinations inland.

Stocks at ARA rose from four-week lows, but remained close to the average for the year so far, according to data from consultancy Insights Global. Stocks have bottomed out this year amid steep backwardation in the gasoline and middle distillate markets.

Backwardation has also kept stocks low at storage facilities along the Rhine this year. Low inventories inland presented no issue for buyers while water levels on the river were at normal levels, and barges could easily travel inland into Germany and Switzerland.

But falling water levels are resulting in increasingly strict barge loading restrictions that are making it progressively more difficult to send material upriver.

Flows of middle distillates from the Amsterdam-Rotterdam-Antwerp area to destinations along the Rhine fell to three-week lows during the week to 13 July, despite a surge in demand as some industrial companies switched from natural gas to heating oil and private households stock up ahead of winter.

Naphtha inventories also increased, as part of a trend playing out across the continent. Market participants suggest that Europe’s naphtha storage facilities are effectively full of Russian cargoes currently unwanted by regional spot buyers.

The lack of available naphtha storage particularly in the ARA area appears to be prompting some traders to look further afield for storage tanks. Tankers carrying naphtha have departed the ARA for destinations in the Mediterranean and even Nigeria in July so far, despite northwest Europe currently being one of the most attractive export destinations in the world on paper.

Reporter: Thomas Warner

Independently-held oil product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area fell in the week, partly because of an increase in barge flows to unusual destinations.

Stocks at ARA fell to a four-week low, hovering close to the average for the year so far, according to data from consultancy Insights Global. Stocks have bottomed out this year amid steep backwardation in the gasoline and middle distillate markets.

Barges departed Rotterdam for Vienna and Berlin over the past week, carrying gasoline blending components and gasoil respectively. No previous shipments on either route have been recorded before. The new flows are likely the result of disruption to refineries in Germany and Austria.

Loadings from the Bayernoil refining complex in southern Germany were stopped on 30 June after a lightning strike, while supply from the Schwechat refinery in Austria has been disrupted by a delayed restart following planned maintenance.

Conventional barge movements also increased over the last week, with more naphtha moving around the ARA area and more gasoil moving up the river Rhine. Market participants are taking out long time charter agreements with barge owners in order to guard against any shortage in vessels later in the year.

Low water levels on the Rhine mean there are already minor loading restrictions in some stretches of the river, and water levels are likely to fall further if dry weather on the European continent continues.

Reporter: Thomas Warner

Independently-held oil product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area rose in the week to 29 June, supported by an increase in gasoline stocks, according to the latest data from consultancy Insights Global.

Refined product inventories at ARA rose to eight-week highs, but have stayed close since September 2021, having averaged in the preceding nine months. Lower export demand for European gasoline helped bring gasoline inventories up on the week, with outflows to the US dwindling.

Tankers containing finished-grade gasoline and blending components departed for Canada, the Mediterranean, Puerto Rico, Spain and west Africa as well as the US. Tankers arrived from Italy, Saudi Arabia, Spain, Sweden and the UK.

Gasoil and jet fuel inventories also rose.

Flows of middle distillate barges up the river Rhine increased on the week, and seagoing tankers departed for Ireland, Poland and the UK. The outflows were offset by the arrival of cargoes from Italy and Russia.

Spot trading in the European diesel market has been subdued in recent weeks, with steep backwardation in the Ice gasoil forward curve making market participants reluctant to acquire any more cargoes than necessary. Jet cargoes arrived from India and South Korea and departed for Norway and the UK.

Naphtha and fuel oil stocks fell. Naphtha inventories stabilised at 15-month highs after rising sharply during June. The slight week-on-week fall in stocks was the result of a cargo departing for Spain, as well as a slight increase in barge flows of naphtha to regional gasoline producers.

The departure of a cargo for Spain was likely the result of traders seeking more cost effective storage tanks, outside of the ARA area that is the main European hub. Naphtha cargoes arrived from Algeria, Italy, Norway, Russia and the UK.

Fuel oil stocks fell on the week. Tankers arrived from Estonia, Finland, Germany, Poland, Russia and Sweden, and departed for France, the Mediterranean and west Africa.

Reporter: Thomas Warner

Independently-held oil product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area rose during the week to 22 June, supported by an increase in gasoil and naphtha stocks, according to the latest data from consultancy Insights Global.

Refined product inventories at ARA rose to five-week highs, but remained close to the level recorded since September 2021, having averaged during the preceding nine months. Slight falls in fuel oil, gasoline and jet fuel inventories were more than offset by an increase in gasoil and naphtha.

Naphtha stocks rose on the week to reach their highest since March 2021, supported by the arrival of cargoes from Algeria, Italy, Russia, Spain and the UAE. Northwest Europe has become a key source of global naphtha demand during June, owing to notably low buying interest from the world’s largest naphtha importing region Asia-Pacific.

Contango in the naphtha forward curve is creating an incentive for market participants to store cargoes in the ARA area. Gasoil stocks also rose on the week supported by the arrival of tankers from India, Russia, Saudi Arabia and the US.

Stocks of all other surveyed products fell by low single digits. Gasoline inventories fell, with backwardation continuing to provide little incentive to store cargoes. The production of gasoline in the region is also being inhibited by the cost of high octane blending components.

Tankers containing finished-grade gasoline and components arrived from Bulgaria, Italy, Latvia, Norway, Russia, Saudi Arabia, Sweden and the UK and departed for Canada, the Mediterranean, the US and west Africa.

Fuel oil stocks fell. Tankers arrived from Estonia, France, Germany, Russia and Sweden, and departed for Singapore and the US. Jet fuel inventories were down, with a single cargo arriving from India and departing for the UK.

Reporter: Thomas Warner

Independently-held oil product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area rose during the week to 15 June, supported by a sharp increase in naphtha stocks, according to the latest data from consultancy Insights Global.

Refined product inventories at ARA stayed, continuing a trend that started in September 2021, having averaged during the preceding nine months.

Firm demand for transport fuels, relative to supply, means that the gasoline and diesel markets are both steeply backwardated and there is little incentive to store cargoes in tank.

The situation is reversed with naphtha, which is heavily oversupplied. A contango between the front and second months makes tank storage the best option for many in the European market, and stocks jumped on the week.

Tankers arrived from France, Libya, Poland, Russia, Turkey and the US, while none departed. Low demand from Asia-Pacific means that northwest Europe remains an attractive arbitrage destination.

Inventories of everything else except fuel oil fell on the week. Gasoil stocks dropped to reach their lowest since April 2014.

The market in the ARA area was generally quiet, and flows of gasoil barges to destinations along the river Rhine were at their lowest since Insights Global began collecting Rhine flow data in 2017, with the exception of periods when water levels were high or low enough to disrupt shipping.

Tankers arrived from France, Qatar, Russia and Spain, and departed for Latvia, the UK and west Africa.

Gasoline stocks fell to four-week low, and barge movements around the region slowed on the week. Notional refining margins for gasoline are at multi-year highs but the high prices of blending components continue to make it difficult to blend new cargoes economically.

Flows to the US fell as a result. Tankers departed for the Mediterranean, Mexico, the US and west Africa, and arrived from Denmark, Italy, Spain, Turkey and the UK.

Fuel oil stocks rose to reach their highest since early December 2021, supported by the arrival of cargoes from Germany, Ireland, Latvia, Russia, Sweden and the UK, while cargoes departed for the Mediterranean, the US and west Africa.

Jet fuel inventories were down, with no tankers arriving and some small cargoes leaving for the UK.

Reporter: Thomas Warner