ARA fuel oil inventories reach four-month high, despite lower exports

Fuel oil inventories in the Amsterdam-Rotterdam-Antwerp region rose by 84,000 mt to 1,171,000 in the week ending July 27, according to data from PJK Consulting.

This week’s build boosted inventories to their highest level in four months. Stocks were last higher on March 30 when they reached 1,545,000 mt.

This represents the third consecutive rise in fuel oil stocks this month.

Fuel oil and gasoline were the only oil product inventories to rise, while naphtha, gasoil and jet fuel stocks drew.

Unlike last week, when the rise in fuel oil and gasoline pushed the total level of stored goods up, despite a draw in other products, this time their growth was insufficient to offset an overall draw.

Total ARA product stocks drew by 57,000 mt to 5,685,000 mt.

The rise in fuel oil inventories comes despite lower Russian export levels into the Northwest European region.

Russian fuel oil exports in June fell 6.2% on the year and 8.2% on the month to 3.293 million mt, data from the Central Dispatch Unit, the energy ministry’s statistical arm, showed this week.

“I am expecting programs for July and August to be lower also,” said one trader, adding that: “This will weigh on an already strong market.