Total oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose on the week, the highest since at least 2003, according to consultancy Insights Global.

Stocks had already been at their highest since at least 2003 the previous week, after inventories of all surveyed products except gasoline had risen in the week to 27 May.

The week on week rise was driven by rising inventories of gasoline, as well as fuel oil and gasoil, while naphtha and jet kerosine inventories dropped lower.

Independently-held gasoline storage in ARA hit a fresh high since at least 2003 this week. Stocks rose as tankers arrived at ARA jetties from Estonia, Russia, France, Spain and the UK. Higher imports into ARA tanks could be a function of higher export demand, as sellers look to accrue supplies to assemble larger cargoes for long-haul voyages across the Atlantic or to Asia-Pacific. Gasoline was exported out of the ARA area to the US and Mexico, as well as the Mediterranean, over the past week. And more long-haul exports could follow in the coming week, with as many as 19 seagoing vessels spotted at jetties in the area, according to Insights Global.

ARA gasoil stocks rose, the highest since October 2019. Weaker inland demand prompted a drop in barge flows up the Rhine, according to Insights Global, while weakening refining margins could also be resulting in rising stocks amid a slowdown in demand. Inflows into the region remain high, with tankers arriving in ARA from Russia, India and the Middle East. No gasoil exports were recorded by Insights Global in the past week.

Fuel oil stocks rose in the week to 3 June, the joint highest on record. But stocks could decrease over the next week as long-haul export shipments materialise. The Torm Mathilde departed from Rotterdam with around 90,000t of fuel oil on 4 June for an onward voyage to Saudi Arabia, according to data from oil analytics firm Vortexa. Renewed Opec and non-Opec production cuts could result in higher flows of high-sulphur fuel oil to the Middle East for power generation as a replacement for crude oil. Suezmax tankers were also said to have been booked to load fuel oil from ARA for onward voyages to Singapore.

Jet kerosine inventories dipped as supplies were delivered to ARA storage from the UAE, while outflows were recorded to the UK. Jet fuel inventories could be decreasing as demand picks up in line with the gradual recovery of the aviation sector.

Naphtha stocks fell. Inland demand from the petrochemical sector remained weak, while stock levels could be decreasing as naphtha is taken out of storage tanks for processing at regional refineries.

Report: Robert Harvey