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ARA Tank Terminal Market Review

Gepubliceerd Jacob on 4 mei 2018 13:45:19

The ARA (Amsterdam – Rotterdam – Antwerp) region is one of the main global commodity trading hubs. Its central location within Northwest Europe and its excellent connectivity to local and global markets have attributed to this position. When we zoom into liquid bulk markets the above statements certainly apply: ARA plays a central part in global petroleum, chemicals and vegetable oil markets. There are very few international commodity traders that do not have a presence in ARA.

In order to support liquid bulk traders a massive amount of tank storage capacity is located in ARA. A lot of that capacity is managed by independent terminal operators. These terminal operators rent out tank capacity to third parties, The majority of this capacity is rented out to traders and the biggest market segment is the petroleum products tank storage market. In this article we will examine recent developments and outlook for the ARA tank terminals market for storing oil products.

When analyzing tank terminal markets one needs to keep in mind that this business is tied closely to the trading business. Traders need tank terminals to facilitate their physical operations. So in order to gauge the tank terminal market one can best look at trader’s business model and trader’s behavior. The central question here is: what circumstances make having access terminal capacity a profitable position?

If you are interested in the answer of this question, please drop me a mail and get the complete article.

Jacob van den Berge
Marketing & Sales Manager

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ARA oil product inventories fall again

Gepubliceerd Jacob on 2 maart 2017 17:04:02

London, 2 March (Argus) — Oil products stored independently in the Amsterdam-Rotterdam-Antwerp (ARA) region fell this week on the back of lower gasoline and gasoil inventories, continuing a fall from a five-month high hit in the week to 16 February.

Gasoline stock levels fell as higher exports volume were shipped to northeast Asia and west Africa. Outflows of gasoline to the US — Europe’s biggest export market — picked up as well while remaining relatively modest. Products were also exported to Gibraltar and the Middle East. On the supply side, gasoline was imported from Finland, Russia, France and Sweden.

Gasoil inventories hit a near two-month low on the back of higher exports volume to west Africa and the Mediterranean region, as well as strong barge demand from the hinterland. Gasoil cargoes delivered in the ARA region this week came from Latvia, Russia and the US.

Naphtha stocks were the highest recorded since mid-September, reflecting large import volumes from Algeria, Poland, the UK and Russia. Lower demand from the gasoline pool may have been a driver of rising inventories.

Fuel oil inventories dropped slightly on the week despite arrivals from Finland, France, Russia, the UK, the US and Latvia. No very large crude carrier (VLCC) loaded this week as Europe to Asia-Pacific arbitrage economics weakened. But trade is still profitable for smaller tankers. Suezmaxes the Lipari and the Aegean Navigator left the ARA region with Singapore discharge on 27 February and 1 March respectively.

Jet stock levels barely increased despite products being supplied from the UAE.

Argus editor: Benoit Petre

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ARA oil products stocks fall from highs

Gepubliceerd Jacob on 23 februari 2017 17:05:22

London, 23 February (Argus) — Oil products stored independently in the Amsterdam-Rotterdam-Antwerp (ARA) region — which hit a 5-month high on the week to 16 February — fell on the back of lower gasoline, gasoil and jet inventories.

Gasoil inventories levels fell for the fourth week in a row. The combination of higher Rhine river water levels with lower barges freight rate bolstered gasoil flows from the ARA region to inland destinations. While gasoil was imported from India and Russia this week, vessels loading in the ARA region sailed to Germany, Togo and the UK.

Gasoline stocks dropped on the week despite poor arbitrage economics to the US. High exports volume to Nigeria, the Middle-East and Pakistan make up for the absence of transatlantic-bound cargoes. Products came from Estonia, Finland, Russia and the UK.

Jet inventories contracted sharply despite imports from the UAE.

Naphtha stocks experienced double-digit growth rate as higher gasoline stocks weighted on naphtha demand from gasoline producers. Higher import volumes also played a role with products coming from Algeria, France and Portugal. Lastly, the surge in naphtha inventories — which mirrors the drop in gasoline stock levels — could reflect relabeling.

Fuel oil stocks inventories increased as vessels from Poland, Russia and the UK unloaded their shipments in the ARA region. One very large crude carrier (VLCC) with Singapore discharge, the New Dream, sailed on 21 February.

Argus editor: Benoit Petre

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ARA gasoline stocks hit a eight-week low

Gepubliceerd Jacob on 9 februari 2017 17:03:36

London, 9 February (Argus) — Oil products stored independently in the Amsterdam-Rotterdam-Antwerp (ARA) region fell this week as gasoline and gasoil stock levels hit eight-week and four-week lows, respectively.

Gasoline inventories kept falling for the second week in a row after hitting a six-month high in late January. Modest exports volumes to the US — only a single vessel loaded this week with US discharge — were more than offset by larger outflows to Brazil, Canada, Nigeria, Mexico and Singapore.

Gasoil stocks in the ARA region fell to their lowest levels since mid-January. Tankers have been loading diesel from Amsterdam to ship product to the Mediterranean as maintenance work at refineries in the region and poor weather in the Black Sea have tightened supplies. Rising water levels on the Rhine have also supported diesel and gasoil barge movements out of ARA to inland destinations.

Naphtha stocks hit a five-week high as a fleet of vessels unloaded products from Algeria, France, Norway, Russia and the UK. Barge demand from the hinterland was supported by the higher Rhine river water levels.

Fuel oil inventories rose this week with products imported from France, Latvia and Russia. Lower freight rates strengthened arbitrage economics to Asia-Pacific, which is said to be fully workable again. One very large crude carrier (VLCC) with Singapore discharge started to load on 4 February. A second ship has also loaded fuel oil this week and is now heading to west Africa.

Jet stocks remained broadly stable this week. Products came from South-Korea and Saudi Arabia.

Argus editor: Benoit Petre

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European Refiners Take Measures to Contain Mid-Distillate Glut

Gepubliceerd Jacob on 4 oktober 2016 9:44:41

The vast glut of middle distillates that has lingered in European tank farms and anchored vessels off regional ports since January 2016 has prompted European refiners to cut run rates and possibly extend autumn maintenance. Downstream analysts have observed falling throughput across Europe as operators rationalize run rates in response to a chronic overhang of refined products, which has saturated inventories and undermined profit margins. Refinery utilization rates in Europe have fallen off highs of 84.9% reached in the third quarter of 2015, when gasoline crack spreads the price difference between crude and gasoline averaged more than $20/bbl. Refiners maximized crude throughput to feed rampant demand growth for gasoline and cash in on bumper profit margins, increasing mid-distillate output as a consequence. Supply at the middle of the barrel outstripped demand growth, creating a market imbalance that pushed rising jet fuel and diesel volumes into storage. Inventory data from JFI sister publication Oil Market Intelligence (OMI) shows that European middle distillate stocks hit historical highs of 324 million barrels during peak winter demand in January 2016. European inventories held at these levels before building again in the summer, reaching 326 million bbl in July.

Crack spreads on middle distillates have suffered as the glut persists. Northwest European (NWE) profit margins on gasoil fell to six year lows of $6.66 per barrel of Brent crude in the first quarter, before recovering to $8.77/bbl in the second quarter and holding there through August. Jet fuel crack spreads followed a similar pattern, hitting six year lows of $8.75/bbl in the first quarter and rising to $9.34 in the second. European refiners have taken measures to enhance profitability in light of the overhang, including crude run cuts and adjustments to product yields. OMI data indicate that refinery utilization rates have fallen to 82.1% in July 2016, down from 84.6% a year ago. Operators have rationalized throughput as they focus on cost efficiency rather than volume. Some refiners have also adjusted product yields to enhance output at the top of the barrel, tapping into the higher gasoline returns. “Everyone is trying to avoid gasoil and diesel at all costs,” commented Michael deiMichei, a senior downstream consultant at JBC Energy. This is primarily achieved through crude slate adjustments, as buyers opt for light, sweet crude over heavier grades, as well as changes to cutting points and blending strategies. The shift to lighter products has increased output of jet fuel, which has been severely oversupplied through the peak summer season in spite of robust airline demand.

Some downstream analysts see cause for optimism in the second half of the year, with market bulls forecasting heavy refinery maintenance in Europe and strong winter demand. Scheduled outages for the September-October turnaround season total approximately 1 million barrels per day, but some observers say volumes could double. Seasonal maintenance will coincide with winter demand for middle distillates, which peaks in October and November as consumers in Germany stock up on heating oil ahead of the winter. “The bounce in autumn demand will coincide with turnarounds, which means product output will be lower, necessitating stockdraws,” Wood Mackenzie’s Head of Downstream Research Jonathan Leitch told JFI. This bullish outlook still faces some critical downside threats. Winter requirements remain weather-dependent, and stock draws may not materialize if Europe or the US experience another mild winter. Moreover, those draws can easily be offset by overseas imports, and Leitch warned that Mideast refiners could exhaust capacity at new mega refineries for “strategic reasons.” It is still too early to say how winter demand is shaping up and signals from the market are mixed. The latest stock data from PJK International shows jet fuel inventories in the Amsterdam-Rotterdam-Antwerp region rose to 618,000 tons last week after dipping to their lowest level so far this year in the previous week.

Copyright © 2016 Energy Intelligence Group. All rights reserved.

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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ARA independent oil product stocks slide

Gepubliceerd Jacob on 31 maart 2016 17:36:18

Independent oil product stocks in the ARA region fell in the past week because of drops in gasoil and fuel oil inventories. But the decline came only two weeks after oil product stocks in the ARA hub trading hit a record high.

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ARA gasoline stocks hit three-year low

Gepubliceerd Jacob on 23 oktober 2014 17:11:08

LONDON, Oct 16 (Reuters) – Gasoline stocks at Europe’s Amsterdam-Rotterdam-Antwerp hub fell to a three-year low this week of 490,000 tonnes, according to data from Dutch-based oil consultancy PJK International.

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Review week 40: Oil prices keep on falling

Gepubliceerd Jacob on 13 oktober 2014 15:32:41

Crude – and product prices extended weekly losses last week. An oversupplied market and concerns about global economic growth pressured sentiment on both oil – and stock markets.

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ARA – Gasoline stocks at Europe’s Amsterdam-Rotterdam-Antwerp oil hub

Gepubliceerd Jacob on 5 september 2014 17:23:42

Gasoline stocks at Europe’s Amsterdam-Rotterdam-Antwerp oil hub rose to 811,000 tonnes, up 4.6 percent from the previous week, data from Dutch oil analyst Pieter Kulsen showed on Thursday.

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Vrachttarieven voor Boven-Rijn zijn iets teruggevallen

Gepubliceerd Jacob on 20 juli 2014 16:32:14

De vraag op de (Rijn) transportmarkt richting Duitsland, Frankrijk en Zwitserland concentreerde zich op de laatste 10 dagen van juli belading. Er was nauwelijks koopinteresse in de regio.

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