September 26, 2016 [OPIS] - Imports boosted Jet stocks in Antwerp, Rotterdam and Amsterdam (ARA) this week, but there were falls in gasoline, distillate, and fuel oil inventories amid refinery maintenance in Russia and north Europe.
Jet stocks held in independent tanks in the trading hub jumped 700,000 bbl (89,000 tons) over the week to today to bring them to a total of 12.7 million bbl (1.61 million tons), according to data from BNP Paribas.
Inventory levels were 15% down from a year ago, but were still up 38.3% versus the five-year average.
But the other main oil products saw stocks draws.
Fuel oil stocks fell 800,000 bbl (125,000 tons) in ARA to 3.8 million bbl (594,000 tons) to leave them down 18% week-on-week, down 46.7% year-on-year and down 28% versus the five-year average.
Gasoline stocks fell 400,000 bbl (48,000 tons) to a total of 6.2 million bbl (745,000 tons).
This left them down 5.8% week-on-week, down 22.9% year-on-year, but still up 6% versus the five-year average.
Distillate stocks, including diesel and gasoil, also fell 400,000 bbl (54,000 tons), but this was only 1.5% lower week-on-week to leave inventory levels at 23.6 million bbl (3.17 million tons).
Inventory levels were down 12.3% week-on-week but still up 20.1% versus the five-year average.
Diesel has been moving from ARA to the Mediterranean recently to meet higher prices in the region.
Shell has loaded 298,000 bbl (40,000 tons) of diesel in Rotterdam on the vessel Minerva Julie, which is expected to head to Koper.
Refinery maintenance in Russia this month has also depleted the diesel and fuel oil export program from the Baltic.
But there is also work currently underway at Shell’s 400,000 b/d Pernis refinery in Rotterdam, although the company was unwilling to disclose which units are affected.
Gunvor’s 230,000 b/d refinery in Antwerp is also expected to start partial maintenance next month.
Further afield, Statoil’s 250,000 b/d Mongstad refinery in Norway is undergoing work until the end of this month, and a diesel unit at Neste’s Porvoo refinery in Finland is out of action for the next six weeks.
The contango in the prompt distillate future curve has narrowed sharply over the last few weeks, and front intermonth spread in Low Sulfur gasoil futures is currently trading at around minus $1.25/ton.
Jet stock levels seems to have bucked the trend in ARA this week after two vessels, carrying 65,000 and 90,000 tons, docked in Rotterdam.
