LONDON, Jan 28 (Reuters) – Gasoline stocks in Europe’s Amsterdam-Rotterdam-Antwerp (ARA) hub jumped by 21 percent this week to a near two-year high, Dutch consultants PJK International said on Thursday.
The stocks rose to more than 1 million tonnes, their highest level since March 2014, as traders looked to take advantage of strong export demand and contango in the market.
“There are lots of cargoes going from Germany refiners to ARA,” PJK’s Patrick Kulsen said. “They are trying to maximise their output for light ends…that’s where all the action is.”
Stocks of other products were little changed, apart from fuel oil, which slid as a Very Large Crude Carrier (VLCC) loaded for Asia.
But storage space for middle distillates outside of ARA was starting to fill, creating logistical issues.
“Tanks inland on the Rhine are quite full at the moment. It’s hampering the trade flows,” Kulsen said. “The weather is so warm, there is no demand for heating oil.”
Middle distillate traders warned that Europe is set to receive two million tonnes of additional diesel imports from the United States, the Middle East and Asia in February, as the region remained the most attractive destination for distillates as prices are higher despite filling tanks and wilting demand.
|Incoming cargoes||Outgoing cargoes|
|Gasoline||France, Latvia, Russia, Sweden, UK||Brazil, Mexico, China, Nigeria|
|Naphtha||France, Russia, UK||None|
|Gasoil||Estonia, Russia, US||Finland|
|Fuel oil||France, Poland, Russia, UK||One VLCC, part cargo for Singapore, arrived Jan. 28, two VLCCs for Singapore to arrive Jan. 30 and Feb. 1|
|Jetfuel||Saudi Arabia, Taiwan||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.
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