LONDON, July 2 (Reuters) – ARA gasoil stocks independently held at the Amsterdam-Rotterdam-Antwerp hub retreated in the week to Thursday, with demand pulling some stocks out of storage, Dutch oil consultancy PJK International said.
Gasoil inventories fell 3.5 percent from last week’s record high to 3.113 million tonnes.
“There’s a correction from last week,” PJK’s Patrick Kulsen said. “There are more barges of diesel going down the Rhine, which is why stocks are down a bit.”
However, gasoil stocks are still around 25 percent higher than they were at the same time last year.
This is largely because an entrenched contango has allowed traders to store products at a high price because they know they will be able to sell them for a higher price at a later date.
Naphtha stocks fell 16 percent to 235,000 tonnes. “There’s demand for naphtha for gasoline blending,” Kulsen said, referring to the strong gasoline crack that has encouraged refiners to produce high volumes of the fuel.
Weekly ARA stocks (in ‘000 tonnes)
|Incoming cargoes||Outgoing cargoes|
|Gasoline||Latvia, France, Russia, UK, USA||Nigeria, South Africa, USA, Canada|
|Gasoil||Latvia, Germany, Nigeria, Russia, Sweden, UK USA||Morocco|
|Fuel oil||Germany, Lithuania, Poland, UK||1 VLCC is bound to leave on July 6|
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