ARA gasoil stocks retreat as demand picks up

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)

 

02/07/2015 25/06/2015 03/07/2014
Gasoline 880 881 887
Naphtha 235 281 200
Gasoil 3,112 3,224 2,491
Fuel oil 881 953 740
Jet fuel 619 627 377

 

Incoming cargoes Outgoing cargoes
Gasoline Latvia, France,  Russia, UK, USA Nigeria, South Africa, USA, Canada
Naphtha UK None
Gasoil Latvia, Germany, Nigeria, Russia, Sweden, UK USA Morocco
Fuel oil Germany, Lithuania, Poland, UK 1 VLCC is bound to leave on July 6
Jet fuel UAE None

 

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