Category: Nieuws

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

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

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

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