ARA gasoline stocks fall as export demand draws cargoes

LONDON, Jan 21 (Reuters) – ARA gasoline stocks fell on the week as strong demand for light ends in the United States, Asia and West Africa helped pull cargoes away from the region, according to data from consultancy PJK International.

Naphtha stocks also drew down as a result of backwardation along the price curve, a market structure in which prices in the future are expected to be below current levels. When this happens, traders are encouraged to sell the cargoes they have in stock.

“We saw some (gasoline) cargoes going out – that may be part of the story. There was a big cargo to Singapore – 80,000 tonnes,” said PJK’s Patrick Kulsen. “Naphtha is also of course going into gasoline blending.”

Stocks of middle distillates, including gasoil and jet fuel, both increased as imports piled on and inland buyers showed little interest in new deliveries, despite the onset of cold weather across Europe.

“Inland demand is not so strong, and imported stocks in Germany and Switzerland are quite high,” Kulsen said. “So even though the weather is colder, it didn’t result in that much flow of gasoil up the Rhine.”

Industry watchers have warned that distillates could swamp the available storage space before a demand recovery takes hold.

 

Incoming cargoes Outgoing cargoes
Gasoline Baltic, Belarus, Estonia, France, Latvia, Spain, Sweden,
UK
Brazil, Mexico, Nigeria, Singapore, West Africa
Naphtha France, Germany, UK None
Gasoil India, UK, US Finland
Fuel oil France, Finland, Germany, Russia, UK one VLCC departs to Singapore on Jan 26, part cargo
Jet fuel Saudi Arabia, UAE None

 

PJK International is also consulted for (medium and long term) supply and demand forecasting, tradeflow forecasting, oil tanker vessel tracking and its view on price trends on NWE oil markets.

*COPYRIGHT NOTICE* – any unauthorised use, duplication or disclosure of ARA stocks data is prohibited without prior approval of PJK International B.V.