LONDON, July 31 (Reuters) – Gasoil stocks independently held at Europe’s Amsterdam-Antwerp-Rotterdam (ARA) hub dropped by 3.3 percent in the week to Thursday, ending 12 straight weeks of gains, data from Dutch oil consultant Patrick Kulsen showed.
Gasoil stocks fell to 2.634 million tonnes, from 2.724 million tonnes last week.
“We saw a lot of gasoil being redistributed from ARA to northwest Europe and the Mediterranean this week,” Kulsen said.
Gasoil stocks had risen every week for nearly three months as contango in the market, with prices for later delivery higher than those for prompt delivery, encouraged refiners and traders to store the fuel.
That contango has lingered and gasoil inventories, though down on last week, remain sharply higher than a year earlier. ARA gasoline stocks declined to 746,000 tonnes, from 873,000 tonnes a week before, the data showed. Kulsen attributed the decline to exports headed for west Africa, the United States and the Caribbean.
Naphtha rose on the week to an all-time high, though much is being stored ready for blending into gasoline.
“Also, there is not much demand for naphtha from the petrochemicals sector as it is expensive relative to other feedstock,” Kulsen said.
Propane, an alternative feedstock, is trading at a large discount to naphtha.
|Incoming cargoes||Outgoing cargoes|
|GASOLINE||Britain, Finland, Norway||Nigeria, Puerto Rico, U.S.|
|NAPHTHA||Germany, Spain, UK||Norway, Sweden|
|GAS OIL||Latvia, Venezuela, U.S.||France, Algeria, Germany, Norway, Britain|
|FUEL OIL||Brazil, Norway, Russia||No VLCC|
|JET FUEL||South Korea, Saudi Arabia||—|
July 31 (Bloomberg) Naphtha stockpiles in independent storage at Amsterdam-Rotterdam-Antwerp oil hub rise to highest since 2008 in anticipation of increased gasoline blending, amid falling petrochemical use, PJK International BV says.
* “There is not so much demand for naphtha in the petrochemicals industry,” Patrick Kulsen, managing director of PJK, says by phone from Breda, Netherlands
* “Stockpiles from the Amsterdam region have increased but this will eventually be blended into gasoline”
* ARA gasoil inventories fell 3.3% to 2.63m mt in wk to today: PJK data * Gasoline stockpiles drop 15% to 746kt; lowest since Feb. 20
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