July 9, 2020 – Total oil products held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose on the week, after dropping for the previous three consecutive weeks, according to consultancy Insights Global.

Stocks reached their highest levels on record during the week to 11 June, then fell for three weeks before rising again during the week to yesterday. The relatively modest stockbuild masked widely divergent trends across the different surveyed products.

ARA gasoil stocks rose on the week, supported by high inventories at destinations along the river Rhine. Gasoil barges typically flow from the ARA area into Germany and other Rhine markets, but with supply inland still high, flows on the route fell to their lowest since February. Tankers departed the ARA area for France, Ireland, Italy, and the UK, and departed for South Korea. Tankers carrying gasoil cargoes also moved between the ARA area and the North Sea, mostly functioning as floating storage vessels.

Gasoline inventories rose on the week. Buying interest from typical export destinations was low, with inventories in other regions also high. Gasoline tankers departed for Canada, east Africa, Mexico, Suez for orders, west Africa and the US. The US and west Africa are typically the primary destinations for ARA gasoline cargoes, but with demand from both areas low, the highest volume departed for Canada instead. The volume of blending components moving around the ARA area on barges appeared slightly higher on the week, but remained low. Blending activity is under downward pressure from high component prices. Tankers arrived in the area from the Baltics, Norway, Russia, the UK and the North Sea where, as with gasoil, tankers have been used as floating storage since the beginning of the Covid-19 pandemic.

Naphtha inventories fell, the lowest level since 14 May. No tankers departed the area, and cargoes arrived from Algeria, Norway and Spain. Local demand for the product from gasoline blenders was low. But interest in stored volumes from petrochemical end-users appeared to firm slightly on the week, supported by European refinery runs still being significantly lower on the year.

Fuel oil stocks fell in the week to yesterday. Tankers continued to depart for the Mideast Gulf for use in power generation, while tankers arrived from Finland, France, Russia and the UK. The incoming cargoes were relatively small in size, and no aframaxes arrived.

Jet fuel inventories were the only surveyed product group to hit fresh all-time highs, for the third consecutive week. Stocks rose the previous week. Demand from the aviation sector remained very low. A tanker arrived from South Korea, and one departed for the UK. Jet fuel supply in the region is being buoyed by the increase in refinery output. Refiners are responding to rising road fuel margins by increasing runs, but thereby have to produce more jet fuel despite it being dramatically oversupplied.

Reporter: Thomas Warner