LONDON, Aug 6 (Reuters) – ARA gasoil stocks in independently held storage at Europe’s Amsterdam-Rotterdam-Antwerp hub hit a record high, helping boost overall product stocks to a another record on Thursday, according to data from Dutch consultants PJK International.
Only stocks of gasoline fell measurably, as buyers in the United States, West Africa and Latin America booked cargoes from Europe, PJK’s Patrick Kulsen said. Other products either posted gains or, in the case of jet fuel, were flat from the previous week.
“Gasoil has increased dramatically due to imports, and also contango,” Kulsen said. “It also indicates oversupply.”
Gasoil stock levels are now 29 percent above where they were at the same time last year, according to PJK data, with overall product stocks roughly 40 percent higher on the year.
There are now 6.4 million tonnes of gasoline, jet fuel, naphtha, gasoil and fuel oil in the ARA hub locations tracked by PJK.
The increase comes as refineries in Europe run flat out to take advantage of strong margins for gasoline, which stood above $26 a barrel on Thursday afternoon. At the same time, demand growth for distillates such as gasoil, diesel and jet fuel has not matched the growth in supply.
Other regions, including the Middle East and Asia, are also now targeting Europe with their surplus distillates, adding to the oversupply.
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Weekly ARA stocks (in ‘000 tonnes)
|Incoming cargoes||Outgoing cargoes|
|Gasoline||Norway, Russia, Sweden||Brazil, Canada, Mexico, Nigeria, Togo|
|Gasoil||Norway, Russia, Sweden, UK, US||None|
|Fuel oil||France, Germany, Lithuania, Norway, Poland||One VLCC scheduled to sail for Asia on August 6|
|Jet fuel||Kuwait, Saudi Arabia||None|
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