Relation barge flows & ARA stocks
Physical and futures oil trading companies struggle in getting a holistic view on the supply and demand balance of Northwest European oil markets. Changes in the S&D balance influence inventory levels and ultimately oil price movements. This incomplete picture results in sub-optimal market timing and more risks.
The Rhine Flow Service is the missing link in the ARA S&D puzzle as it captures oil products barge movements up and down the Rhine. Backtesting of Rhine Flow Service data in relation with ARA oil stock levels shows that there is a significant correlation between ARA stock levels and Rhine barge movements.