LONDON, July 9 (Reuters) – ARA oil stocks in independently held storage in Europe’s Amsterdam-Rotterdam-Antwerp hub hit a record high on Thursday, data from Dutch oil consultancy PJK International showed.
Inventories of gasoline, gasoil, naphtha, jet fuel and fuel oil all rose to reach a total of a little less than 6 million tonnes this week, 4.7 percent above the previous week.
“Nearly all the products are in contango,” PJK’s Patrick Kulsen said. “There is an oversupply … all refineries are producing.”
Gasoline, however, is in backwardation, suggesting prices now are higher than those next month. But traders have to first bring the cargoes into the ARA hub before exporting them to hungry drivers in the United States, Mexico and West Africa.
A fire-related outage at the gasoline-producing fluid catalytic cracker at Germany’s 310,000 barrel per day MiRO refinery is also increasing demand for gasoline barges within Europe, meaning this week’s rise in gasoline stocks could be short-lived.
Stocks of other products, however, could increase further as refineries look to run as much crude oil as possible to take advantage of high margins. Data earlier on Thursday from Euroilstock showed refinery runs across Europe up 9.3 percent year on year in June.
Weekly ARA stocks (in ‘000 tonnes)
|Incoming cargoes||Outgoing cargoes|
|Gasoline||Denmark, France, Germany, UK||Mexico, US Atlantic Coast, West Africa|
|Gasoil||Latvia, Germany, Russia, Sweden||Argentina, Denmark|
|Fuel oil||France, Lithuania, Russia, UK||1 VLCC is bound to leave on July 11|
|Jet fuel||Saudi Arabia||None|
*COPYRIGHT NOTICE* – any unauthorised use, duplication or disclosure of ARA stocks data is prohibited without prior approval of PJK International B.V.