Weekly ARA naphtha stocks up 33 pct

LONDON, March 5 (Reuters) – Naphtha stocks held in independent storage at Europe’s Antwerp-Rotterdam-Amsterdam (ARA) hub jumped 33 percent in the week to Thursday, data from Netherlands-based PJK International showed.

Naphtha inventories were boosted by cargoes arriving from France and Russia, as well as additions from within the ARA hub itself, oil consultant Patrick Kulsen said.

Gasoline, gasoil, fuel oil and jet fuel stockpiles all edged lower, suggesting that recent stockbuilding had come to an end. “There was less activity this week,” Kulsen said.

With most refined products now in backwardation, there is no longer an incentive for traders to build inventories with the aim of selling products at a higher price at a future date.

Backwardation describes a market structure where prompt market prices are higher than those for future delivery.

05/03/2015    26/02/2015  06/03/2014
Gasoline 875 881 989
Naphtha 264 198 94
Gasoil 3,107 3,114 1,901
Fuel oil 627 632 672
Jet fuel 527 543 443

 

Incoming cargoes           Outgoing cargoes
Gasoline Norway, UK Mexico, Togo
Naphtha France, Russia None
Gasoil Lithuania, Russia, United States None
Fuel oil France, Russia, United States 1 VLCC to Singapore
Jet fuel Russia None