LONDON, April 9 (Reuters) – ARA Gasoline and naphtha stocks held in independent storage at Europe’s Antwerp-Rotterdam-Amsterdam hub fell this week as buoyant export demand drew cargoes out of the region, according to Dutch-based PJK International.
“There is much demand for gasoline in West Africa and the U.S.,” said PJK’s Patrick Kulsen, adding that naphtha was also “quite busy” as a result of demand for blending with gasoline.
Gasoil stocks also fell to 2.6 million tonnes, their lowest level since late 2014, as backwardation encouraged sellers to offer from storage.
Only stocks of fuel oil rose, which Kulsen said was partly down to contango in that market and backwardation on gasoline, naphtha and distillates. Backwardation is the market structure in which prompt prices are below future levels, making storing unprofitable.
|Incoming cargoes||Outgoing cargoes|
|Gasoline||Latvia, India, Portugal, Russia||Algeria, Mexico, Togo, U.S.|
|Gasoil||ILatvia, Sweden, U.S.||Far East|
|Fuel oil||Brazil, Estonia, France, Russia, Britain||no VLCCs|
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