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ARA independent product stocks at one-year low

Gepubliceerd Jacob on 30 november 2018 16:31:54

London – Oil product stocks held in independent storage within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by 2.4pc on the week today to 4.83mn t, the lowest recorded since 30 November 2017.

Fuel oil stocks fell by 13pc amid strong demand from east of Suez. The Solomon Sea left Rotterdam on 27 November carrying a 100,000t cargo. Smaller tankers also left the ARA area for the Mideast Gulf and west Africa. Cargoes arrived from France, Russia and the UK.

Gasoil stocks fell by 3pc, the lowest level recorded since June. Low Rhine water levels continued to affect the market, limiting barge flows from the ARA into Germany. Market participants continued to use tankers to load gasoil in the ARA area and transporting it to north German seaports for onward distribution. Demand from inland fell on the week, impacted by higher freight rates. Tankers arrived from Russia and departed for Germany, France, the UK and west Africa.

Gasoline stocks rose by 1.1pc. The US Atlantic and Gulf coasts remained well supplied, limiting interest in European gasoline from across the Atlantic. West Africa was the only region to receive gasoline cargoes from the ARA during the week to today. Gasoline flows into Germany were steady but volumes of blending components coming the other way fell on the week because of weakening gasoline refining margins.

Naphtha stocks rose by 28pc. Inventories were supported by the contango structure in the naphtha market, resulting from an ongoing supply overhang. Demand both from gasoline blenders and petrochemical users remained low during the week to today, and barge flows up the river Rhine to inland end-users dwindled. No tankers left the ARA area and tankers arrived from Algeria, Libya, Russia, Sweden and the US.

Jet fuel stocks rose by 1.7pc to a seven-week high of 656,000t. Tankers arrived from the east of Suez into UK ports, easing the regional tightness seen in regional weeks, and demand was lacklustre. The Fos Picasso arrived into Rotterdam on 27 November with 90,000t of jet fuel from the UAE but had not offloaded at time of writing. As with other products, barge flows into Germany were constrained by low water levels.

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ARA independent product stocks reach 11-month low

Gepubliceerd Jacob on 16 november 2018 12:02:45

London, (Argus) — Oil product stocks held in independent storage within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by 11pc from a week earlier to 4.88mn t, the lowest level recorded since December 2017.

Gasoil stocks fell by 7pc to 2.2mn t, the lowest level recorded since 5 July amid tight supply in Europe. The Swiss government released more gasoil from its strategic reserves today, in order to alleviate persistent supply disruptions. Barge freight rates from the ARA area to Switzerland have risen to around SFr180/t, up from SFr20/t at the beginning of July. Tankers arrived in the ARA area from Russia and the UK, and none departed.

Gasoline stocks fell by 4pc to 899,000t, the lowest level since 13 September. Several tankers left for Mexico and for Nigeria, and vessels also departed for the US and Mideast Gulf. Tankers arrived in the ARA from France, Russia and the UK. Northwest Europe remained amply supplied and flows into Germany continued to outstrip those coming out, in a reversal of the usual pattern.

Fuel oil stocks fell by 27.4pc to 913,000t. The Frio departed Rotterdam during the reporting period carrying a 130,000t cargo to Singapore, and two other vessels also left the area carrying fuel oil cargoes. Demand from east of Suez remained strong, drawing cargoes into the ARA area for future eastbound loadings. Tankers arrived in the area from Latin America, Russia and Spain during the week to today.

Jet fuel stocks fell by 1.2pc to 636,000t. Inland demand continued to be met largely by pipeline flows and there was an uptick in buying interest for dual purpose kerosine, likely from the UK. Stocks remained low as recent backwardation in Ice gasoil futures made storage economics unviable. In addition, some cargoes originally destined for northwest Europe from the US and east of Suez have been diverted to the Caribbean and Africa, limiting prompt availability.

Naphtha fell by 13.4pc to 226,000t. Outflows to inland end-users remained under downward pressure from problems arising from low Rhine water levels. But demand from gasoline blenders in the ARA area appeared higher, amid increasing gasoline outflows from Europe. A single tankers arrived in the ARA area from the UK, and none left. Eastbound arbitrage economics have become unviable on benchmark paraffinic grades over the last week amid ample supply in Asia-Pacific.

Reporter: Thomas Warner

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ARA independent product stocks rise

Gepubliceerd Jacob on 9 november 2018 12:36:10

(Argus) — Oil product stocks held in independent storage within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose by 3.3pc from a week earlier to 5.48mn t, prompted largely by a sharp rise in fuel oil stocks.

Fuel oil stocks rose by 33.3pc to a seven-week high of 1.26mn t. The Eagle San Francisco and the Frio — both Suezmax-sized tankers — are currently in Rotterdam awaiting loading. Firm demand from east of Suez continues to draw smaller cargoes into ARA for loading into larger tankers. Tankers arrived in the ARA area from Canada, France, Latvia, Russia, Spain and the UK. A single tanker left the area for west Africa.

Naphtha stocks also rose, increasing by 8.3pc to 261,000t. Outflows to inland end users remained under downward pressure from problems arising from low Rhine water levels. Naphtha demand from gasoline blenders in northwest Europe also remained low. Dwindling demand from end users in Asia-Pacific limited viable outlets for European naphtha, helping to bring outright prices to their lowest since February, at $545.50/t. Vessels arrived from Algeria, Finland, France, Norway and the UK. None left the area.

Jet kerosene stocks rose by 2.9pc to 644,000t. The Pro Triumph arrived into Rotterdam on 4 November carrying an 80,000t jet fuel cargo from India, and a single tanker departed for the UK. Steep backwardation in underlying Ice gasoil futures made the economics of storing jet fuel in tank unattractive, creating an incentive for end users to consume purchased volumes promptly.

Stocks of gasoil fell by 133,000t to 2.38mn t, the lowest level recorded since 19 July, amid tight supply in Europe. Margins for French 10ppm diesel cargoes on a cif Le Havre basis climbed to $23.85/bl against North Sea Dated yesterday, from $20.48/bl a week earlier — to their widest point since November 2012. Margins have averaged some $14.69/bl in the year to date. Tankers arrived in the ARA area from Russia and the US, and departed for the UK, west Africa and Germany. Low Rhine water levels have prompted market participants to transport gasoil to north German ports on tankers, before sending them inland via rail.

Gasoline stocks fell by 42,000t to 943,000t, the lowest level since late 20 September. Remaining supply of summer-grade product helped incentivise bookings to Argentina and Australia. Tankers also left for Latin America, China and west Africa. Tankers arrived from Denmark, France, Italy, Norway and the UK. Northwest Europe remained amply supplied. As with gasoil, gasoline was increasingly being transported into inland Germany by rail in response to low Rhine water levels.

Reporter: Thomas Warner

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ARA independent product stocks lowest since August

Gepubliceerd Jacob on 5 november 2018 9:11:42

(Argus) – Oil product stocks held in independent storage within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by 2.6pc from a week earlier to a nine-week low of 5.3mn t, prompted by falling stocks of all recorded products.

Naphtha stocks fell by 16pc to 241,000t, the lowest level since 11 May 2018. Outflows to inland end-users were marginally higher than the level recorded a week earlier. Tankers arrived from Russia and the UK, and none were reported leaving the area. Northwest European naphtha prices are at their lowest since April, inhibiting arbitrage inflows from other regions.

Stocks of gasoil fell by 51,000t to 2.51mn t, the lowest level recorded since 30 August, amid firm demand. German 10ppm diesel barge differentials have found support across the last week, potentially aided by a brief recovery in Rhine water levels. Water levels rose to 53cm at key measuring point Kaub today, according to shipping reports, from just 27cm on 24 October — allowing a greater number of barges to access firm demand from German inland markets. Diesel barge differentials climbed to premiums of $5/t against Ice November gasoil at the close of October, from premiums of $3.75/t on 25 October. Tankers arrived in the ARA area from Saudi Arabia and the US, and departed for the United Kingdom.

Gasoline stocks fell by 11,000t to 985,000t. Volumes heading up the Rhine into Germany were higher than those coming the other way, with refinery activity in the country impeded by low water levels and outages. Tankers departed for the Mideast Gulf, Suez for orders and the UAE. Tankers arrived from Finland, France, Spain, Sweden and the UK.

Fuel oil stocks fell by 2.4pc to 944,000t, the lowest level since the first week of April amid firm demand from east of Suez. The fall in inventories was prompted by the loading and departure of at least two Suezmax-sized cargoes during the week to today. Tankers arrived in the ARA area from Latvia, Poland, Russia and the UK.

No jet kerosene cargoes arrived in the ARA area during the week to today, and inventories reached their lowest level since 17 May at 626,000t. Backwardation in underlying Ice gasoil futures made the economics of storing jet fuel in tank unviable.

Reporter: Thomas Warner

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ARA oil product stocks fall on gasoil draws

Gepubliceerd Jacob on 19 oktober 2018 13:16:35

London, 18 October (Argus) — Oil product stocks held in independent storage within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by 4.1pc on the week today, as a result of a significant drop in gasoil volumes.

Stocks of gasoil rose fell by 5.3pc to their lowest in four weeks (see table). Cargoes arrived from Russia and departed for France, the UK and the Mediterranean. Demand from along the Rhine remained muted, particularly in the upper Rhine area.

Gasoline stocks fell by 7.1pc. Ample supply weighed blending margins, boosting outflows. Tankers left for Australia, Latin America, Singapore, the US and west Africa.

Fuel oil stocks rose slighlty. Tankers left the ARA area for Singapore and west Africa, and the Chios was still in ARA partially loaded today. Tankers arrived in the area from France, the Mediterranean, Latvia, Poland, Russia and Spain.

Naphtha stocks edged up, with demand from within Europe subdued amid narrow gasoline blending margins and transport issues on European waterways.

Reporter: Thomas Warner

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ARA independent product stocks increase

Gepubliceerd Jacob on 28 september 2018 13:56:15

London, 27 September (Argus) — Oil product stocks held in independent storage within the Amsterdam-Rotterdam-Antwerp (ARA) trading hub rose by 6.3pc from a week earlier because of large gains in fuel oil and gasoline inventories.

Fuel oil stocks rose by a fifth from a week earlier as product was put into storage to be loaded on two Singapore-bound VLCCs. One of these tankers — the Ridgebury Artois — has likely started loading fuel oil and could shortly leave for Singapore. No VLCCs left during the past week, while the Suezmax Sabine departed for Asia-Pacific with 130,000t of fuel oil. Bookings on the route to Singapore have picked up pace this week as export economics improved following a decline in Singapore’s inventories to multi-week lows. The ARA region imported fuel oil from the Black Sea, the Baltic Sea and Spain.

Gasoline stocks also rose, climbing by 10pc amid limited export options. US demand for gasoline has been weak since the conclusion of the summer driving season. This was reflected in last week’s increase in stocks, which came despite lower domestic production. During the week to 21 September, implied demand dropped to a 17 week low, and was also down year on year, according to EIA data. Exports to the Middle East are also likely to slow in the coming week as regional refineries come back from unplanned shutdowns. The ARA region exported gasoline to the Mideast Gulf and west Africa during the past week.

Lack of export options and comparatively low demand also led to an increase in naphtha stocks, which climbed 6pc from a week earlier. The European naphtha market is well-supplied, while demand from gasoline blenders is low. And arbitrage economics to Asia-Pacific are unworkable, largely because of ethylene cracker maintenance in that region. No naphtha was exported from the ARA region this week, while product arrived from Algeria, France, Spain and the UK.

And diesel inventories rose by less than 1pc this week. US diesel production also has fallen, which is likely to lead to a decline in exports to Europe in the coming weeks. In Europe, water levels on the Rhine remain low, keeping barge rates high and limiting inland shipments. The economics for importing diesel into Europe remain weak. But this could change if Rhine river water levels rise, allowing German demand to access ARA gasoil stocks, reducing supplies and pushing prices higher.

Jet fuel stocks bucked the trend, dropping by 14,000t, or 2pc because of comparatively high export volumes. The ARA region shipped the product to Denmark and the UK, while importing some jet fuel from the Mediterranean.

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ARA oil product stocks decline

Gepubliceerd Jacob on 27 juli 2018 12:33:39

London, 26 July (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub declined this week because of a large drop in gasoline inventories.

Gasoline stocks dropped by more than 12pc week on week, largely because of a high level of exports. European gasoline was shipped to the Mideast Gulf, Latin America, the US and west Africa, where demand rose significantly compared with the prior week. Exporters have been facing increasingly unworkable spot arbitrage economics between Europe and the US. But stocks in the US dropped to the lowest level since 11 May this week, which will likely stimulate transatlantic exports.

Fuel oil stocks also fell, dropping by 2.5pc from the prior week. The VLCC Nisalah finished loading fuel oil from Rotterdam and departed for Singapore, resulting in a decline in inventories. Imported volumes increased, partially offsetting the impact of exports on stocks. No new VLCC bookings have surfaced so far this week as the economics for exporting fuel oil to Asia-Pacific weakened.

Jet fuel stocks dropped by 5pc from the prior week as no product was imported and demand remained strong. Arrivals from east of Suez and the US were offloaded into other ports in northwest Europe, including Le Havre.

Gasoil stocks increased despite unviable US Gulf coast diesel arbitrage economics to northwest Europe. Product continued to arrive from the Mideast Gulf and a flurry of MR tanker bookings have emerged in recent days to load Baltic diesel for European discharge, which is likely to keep the European gasoil market well-supplied. Inland demand remains firm, but persistently low Rhine water levels have reduced barge loading capacity and drove barge freight rates higher, contributing to the increase in stocks.

And naphtha stocks rose marginally, climbing by just 1,000t on the week. The ARA region imported the product from France, Portugal, Sweden and the UK during the week. Demand from European gasoline blenders rose slightly, offsetting the impact of comparatively high imports.

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ARA independent product stocks fall

Gepubliceerd Jacob on 22 juni 2018 8:30:21

London, 21 June (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by just over 2pc week-on-week to reach 5.6mn t today.

The decrease in total stocks was driven by a 5pc fall in gasoil inventories, to around 2mn t. Diesel demand from inland Germany is firmer relative to recent weeks, and falling Rhine water levels have prompted a pick-up in gasoil barge traffic on the river in expectation of higher freight prices.

Gasoil cargoes arrived in the ARA area from Finland, Russia and the US at lower levels than those reported in recent weeks. Significant diesel volumes are currently being booked to arrive in Europe from east of Suez. Vessels left the area for Spain and the UK. The premium of second-month Ice gasoil futures to the front-month contract rose on 20 June to its highest in more than three months, at $1/bl.

Fuel oil stocks rose by 3.6pc on the week to a 15-month high of 1.53mn t, having built up in recent weeks amid minimal fuel oil loadings in Rotterdam and steady imports. Stocks should fall next week as two Singapore-bound VLCCs are currently in Rotterdam waiting to load up to 540,000t of fuel oil. The two vessels – Front Prince and Saham – booked by trading firm Vitol and an unnamed charterer, respectively, are the first VLCCs booked on the route to Asia-Pacific since March.

Gasoline stocks fell by 4pc week-on-week as a result of lower import volumes and an increase in exports, particularly to the US. But stock levels remain high and the European gasoline market continues to be oversupplied. Cargoes arrived from Finland, France, Norway and the UK. Vessels left the area for Algeria, the Mideast Gulf, Canada, Estonia, Latin America, west Africa and the US.

Jet fuel stocks declined by 3pc over the past week amid seasonally high demand and no seaborne cargo arrivals. Demand from buyers along the Rhine also firmed. A single cargo left the ARA area, bound for the UK.

Naphtha stocks fell by nearly 5pc to 329,000t. The naphtha market remains in backwardation, but stored volumes are still above the weekly average recorded so far this year, as a result of weak demand from gasoline blenders and general supply length around Europe. Cargoes arrived from Russia and the UK.

Reporter: Thomas Warner

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ARA oil product stocks fall

Gepubliceerd Jacob on 6 april 2018 8:22:49

London, 5 April (Argus) — Oil products held in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by more than 5pc this week, largely because of a sharp decline in fuel oil inventories.

Fuel oil stocks fell by 21pc. The trade route to Asia-Pacific remains workable, and some product was exported to supply the west Africa bunkering market. Suezmax British Heritage left Rotterdam for west Africa yesterday. The very large crude carrier (VLCC) Olympic Liberty, chartered by Koch to transport 270,000t of cracked fuel oil to Singapore, departed Rotterdam on 3 April. It is the second VLCC to depart the Dutch port in the past week. The Gener8 Hercules left Rotterdam for Asia-Pacific on 29 March. VLCC Olympic Leopard is scheduled to load in Rotterdam by the middle of April.

Imports of Russian fuel oil from the Baltic Sea remained steady.

Naphtha has been moving eastbound because of strong demand from the Asia-Pacific petrochemicals sector and short condensate supplies from the Mideast Gulf. Naphtha stocks declined, shedding around 20,000t or 5pc. Northwest Europe remained well-supplied with naphtha, and regional end-users including German firm BASF offered cargoes.

Gasoline stocks in the ARA region fell by nearly 2pc from the prior week. Prompt Eurobob prices rose sharply during the week, hitting the appeal of buying volumes in ARA for export markets. Transatlantic gasoline shipments fell sharply — spot fixtures dropped below 300,000t from more than 900,000t in the prior week. Spot bookings to Latin America and west Africa declined.

Diesel stocks declined by around 2.5pc. Inland demand was firm, stimulating movement from the ARA region. Diesel imports from the US remained low, and flows from the former Soviet Union are likely to decline in April because of planned refinery maintenance works in Russia.

Jet fuel stocks bucked the trend to rise marginally. Northwest Europe imported jet fuel from the Mideast Gulf, and some product was shipped to the UK. European jet fuel imports are likely to increase in April, and demand is likely to hold steady. Trading firm Gulf Petroleum has provisionally booked the BW Danube to take 60,000t of jet fuel to northwest Europe from Sikka, India, loading 6 April.

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ARA oil product stocks hit 10-month high

Gepubliceerd Jacob on 9 maart 2018 9:17:40

London, 8 March (Argus) — Oil products in independent storage tanks in the Amsterdam-Rotterdam-Antwerp (ARA) region rose by just under 7pc on the week to a 10-month high at 6.29mn t today, according to consultancy PJK.

Fuel oil stock levels increased by 314,000t on the week, accounting for around three-quarters of the total stock build recorded on 2-8 March. Higher stocks reflected a combination of larger inflows from Finland, France, Poland and Russia, and a dip in export volumes. One very large crude carrier (VLCC) — the Daba — sailed from Rotterdam to Singapore, but only a fraction of its cargo was taken into account by this week data as its loading began in the week to 1 March. Another smaller tanker — the Suezmax Sonangol Cazenga — was booked by Petroineos to load 147,000t of cracked fuel oil. Tracking tools showed this tanker still moored at Rotterdam yesterday. Stocks are unlikely to stay elevated next week, with three VLCCs — the DionaOlympic Liberty and Zourva — booked to load as much as 810,000t of cracked fuel oil during 10-20 March. Arbitrage economics to Asia-Pacific have improved in the past week, at least on paper, while fuel oil demand in northwest Europe remains subdued.

Gasoil inventory rose by 115,000t in the week, against a backdrop of rising import volumes. Cargoes arrived from India, Latvia, Poland, Russia and Saudi Arabia. On the demand side, seaborne trade was limited to the UK but shipments up the Rhine topped 170,000t in the week to today, setting a fresh 2018-to-date high. The impact of frozen canals and locks in northwest Europe on barge traffic last week continued, with higher freight rates reported in the ARA and along the Rhine.

Naphtha stock levels firmed by 21,000t on the week amid persistently poor demand from the cracking pool. Naphtha’s premium to rival petrochemical feedstock propane crept up to $140/t in the week to today, its highest level since August 2015. Higher inflows from France, Algeria, Russia and the UK also contributed to the stockbuild.

Jet inventory held steady on the week. Seaborne supply came to a standstill in the week to today, but tracking tools showed several cargoes bound to reach northwest Europe in the coming weeks.

In contrast with other oil products, gasoline stocks declined by 40,000t on the week. The stock draw was mostly driven by increased export volumes, said PJK. Flows to North America — including the US, Canada and the Caribbean — were up on the week, and cargoes with Mideast Gulf discharge options were spotted again. Product was also exported to the UK, west Africa and Latin America. On the supply side, steady volumes came from France, Norway, Spain and the UK. Inflows from refineries along the Rhine into the ARA were stable on the week, according to PJK, at around 25,000t on 2-8 March.

Argus reporter: Benoit Petre

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