LONDON, June 5 (Reuters) – Gasoil stocks held at Europe’s Amsterdam-Antwerp-Rotterdam (ARA) storage hub rose by 13.8 percent to 2.096 million tonnes in the week to Thursday, data from Dutch oil analyst Pieter Kulsen showed, with large volumes arriving in the region.
Gasoline stocks gained 1.5 percent to 984,000 tonnes from the prior week. Naphtha, fuel oil and jet fuel all rose.Kulsen said the low flat price of diesel had encouraged some importers to buy, despite only a small pickup in demand.
An emerging contango in the diesel market made it economical for importers to store product, as they expect future prices to increase, and cargoes arrived in Europe from around the world.
“Some importers are taking advantage of the lower flat price,” Kulsen said.
Diesel differentials have been depressed for weeks, falling as low as $5 a tonne fob ARA on Wednesday, while diesel refining margins sank to a four-year-low. In the gasoline market, stocks were rising as importers anticipated an increase in demand with the approach of summer, when holiday travel peaks.
“Along the Rhine, ahead of the seasonal holidays there is more demand. In Germany and Switzerland there is more demand as people travel south,” Kulsen said.
Naphtha attracted demand for blending into gasoline but was overlooked by petrochemical plants in favour of cheaper alternative feedstocks, he added.
|Incoming cargoes||Outgoing cargoes|
|GASOLINE||France, Russia, UK||Germany, West Africa for orders, USA|
|GAS OIL||France, Finland, Latvia, Kuwait, Poland, Britain, Russia, USA||France, Britain|
|FUEL OIL||Brazil, France, Italy,Russia, USA||none|
|JET FUEL||Saudi Arabia||France|