Independent oil products stocks in the Amsterdam-Rotterdam-Antwerp (ARA) region increased by 5pc this week, reaching 5.2 mn t.
Gasoil stocks rose on weekly basis for the first time in four weeks, and after hitting a one-year low last week. Improved arbitrage economics are supporting the movement of diesel tankers from the Mideast Gulf to ARA.
Demand for fuel oil exports from Rotterdam to Singapore has slowed, after several weeks of large volumes booked on very large crude carriers (VLCCs) on the route. These high exports, and rising freight rates, have dampened further export bookings.
A drop in flows of European gasoline to Latin America and west Africa contributed to a stock build this week, with a rise in spot bookings to east of Suez markets failing to compensate. Around 287,000t of west Africa-bound European gasoline was booked in the spot tanker market with 24-30 November loading, down from 395,000t in the previous week. Not a single cargo loaded gasoline to Togo or Guinea this week, and shipments to Nigeria were low. Gasoline booked in the spot tanker market for Latin America tumbled as well, coming short of last week at 74,000t. Gasoline stock increases were also supported by the arrival of barges from inland despite [low Rhine river water levels].
Naphtha stocks remained fairly stable in a context of steady supply and weak eastward arbitrage economics. Jet fuel demand continued to decline in line with seasonal patterns, while fresh arrivals from South Korea helped stock levels for the fuel to climb.
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