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