LONDON, June 11 (Reuters) – Oil product stocks held in independent storage at Europe’s Amsterdam-Rotterdam-Antwerp hub rose 5 percent in the week to Thursday to hit a record high, data from Dutch oil consultant PJK International showed.
Stocks of all oil products apart from jet fuel rose, bringing the total to 5.845 million tonnes, the highest level since PJK began tracking them in 1995.
PJK’s Patrick Kulsen said the growth came on the back of high refinery production in Europe and as a result of the use of these storage terminals to amass enough product to export to other regions.
“You have all these fuels all over coming into ARA … and going out of Europe,” Kulsen said.
Gasoline, which rose 9 percent to 821,000 tonnes, is unlikely to stay in tank for long, Kulsen said, as the current market prices are higher than those in the future – a structure known as backwardation.
Fuel oil stocks were nearly 60 percent higher than the same week in 2014 due to the drop off in European consumption in bunker fuels and to the large vessels that are waiting to load for Asia.
Gasoil stocks rose by 4 percent to 3.015 million tonnes, a number that Kulsen said could rise further if the contango on that market deepens. Gasoil stocks alone reached a high of 3.146 million tonnes in February of this year.
“There is a slight contango, so it should go up or stay at high levels,” Kulsen said.
Weekly ARA stocks (in ‘000 tonnes)
|Incoming cargoes||Outgoing cargoes|
|Gasoline||France, Latvia, Russia, Sweden, UK||Brazil, China, Greece, Israel, Saudi Arabia, Singapore, UK, WAF for orders|
|Naphtha||Germany, Italy, Russia||None|
|Gasoil||Latvia, India, UK||Argentina, UK|
|Fuel oil||Estonia, France, Poland, Russia||1 VLCC ETD 12/6 part cargo, 1 VLCC ETA 14/6, ETD 21/6 full cargo to Singapore|
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