January 5, 2016 [OPIS] - Ultra-low-sulfur diesel in floating storage on tankers at anchor near ports around northwest Europe is seen rising rapidly, with nearly 640,000 metric tons (4.8 million bbl) identified on 11 ships, according to the OPIS Tanker Tracker.
As middle distillate prices collapse and onshore inventories in the Amsterdam-Rotterdam-Antwerp region hit records, traders and oil companies are seen leaving ULSD on tankers for as long as seven weeks, even as storage economics fail to show the practice is profitable.
Jet fuel in floating storage is also rising, with 245,000 tons seen on three vessels, information compiled from brokers, traders and vessel satellite-tracking data show.
Distillate storage in the ARA hub was measured at 27.92 million bbl for the week ending Dec. 17, the latest statistics published by BNP Paribas, citing data from PJK International. That’s 68% higher than the five-year average and 41% above the same period a month ago.
Vitol appears to be leading floating storage, with five of the 10 tankers laden with ULSD reportedly controlled by the oil trader. Trafigura also has two cargoes.
