LONDON, June 25 (Reuters) – ARA gasoil stocks independently held at the Amsterdam-Rotterdam-Antwerp hub climbed to a record high in the week to Thursday, boosted by strong imports and lower European demand, Dutch oil consultancy PJK International said.
Gasoil inventories hit 3.224 million tonnes, up 6 percent week-on-week. “The contango is attracting product from the U.S. and the Baltics, and there is less than average demand along the Rhine and in the hinterland markets because the tanks are already quite full,” PJK’s Patrick Kulsen said.
Contango describes a market structure that allows traders to store products with the aim of selling them at a higher price for future delivery.
Gasoline stocks rose to 881,000 tonnes and naphtha rose to 281,000 tonnes. “There was a big build at a terminal that uses naphtha for gasoline blending,” Kulsen said.
Jet fuel inventories also rose, to 627,000 tonnes, as Middle Eastern refiners continued to export their jet fuel surplus to Europe.
Weekly ARA stocks (in ‘000 tonnes)
|Incoming cargoes||Outgoing cargoes|
|Gasoline||Cuba, France, Germany, Italy, Russia, Sweden, Turkey, USA||Algeria, Latin America, UK, US|
|Naphtha||Latin America, Portugal, Russia||None|
|Gasoil||Latvia, Nigeria, Russia, Spain, USA||None|
|Fuel oil||Brazil, France, Germany, Lithuania, Russia, UK||VLCC exp. Departure June 23 destination Singapore|
|Jet fuel||Kuwait, Saudi Arabia||None|
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