ARA gasoline and naphtha stocks fall on high demand

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.

09/04/2015 02/04/2015 10/04/2014
Gasoline 1,049 1,083 1,124
Naphtha 247 253 129
Gasoil 2,638 2,816 1,412
Fuel oil 1,095 819 568
Jet fuel 531 584 418

 

Incoming cargoes Outgoing cargoes
Gasoline Latvia, India, Portugal, Russia Algeria, Mexico, Togo, U.S.
Naphtha Italy, Russia None
Gasoil ILatvia, Sweden, U.S. Far East
Fuel oil Brazil, Estonia, France, Russia, Britain no VLCCs
Jet fuel U.A.E. None

 

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