Story
Jet Fuel Stocks Decline in Key ARA Hub Amid Shifting Trade Flows
Summary
Inventories of jet fuel, gasoline, and naphtha all fell in the key Amsterdam-Rotterdam-Antwerp storage region, according to data from Insights Global, with low Rhine water levels adding to logistical pressures.
Jet fuel inventories in the crucial Amsterdam-Rotterdam-Antwerp (ARA) storage hub fell by 4.5% in the week ending Thursday, driven by a slowdown in trade flows. Data from Dutch consultancy Insights Global also showed significant drawdowns in gasoline and naphtha stocks.
Key Inventory Changes
Jet fuel and kerosene inventories in the ARA refining and storage hub decreased to 592,000 metric tons. The weekly report highlighted declines across several key refined products:
- Gasoline: Stocks dropped 3.8% to 904,000 tons, reaching their lowest point since May 2024.
- Naphtha: Inventories saw the steepest decline, falling 18.3% to 339,000 tons.
Trade and Logistical Pressures
AdThe decrease in jet fuel stocks was attributed to a combination of reduced exports and an absence of imports during the period. For gasoline, the drawdown was fueled by cargoes shipped to South Africa and the United States, along with an unusual export to Brazil, noted Lars van Wageningen of Insights Global.
Market logistics were further complicated by low water levels on the Rhine river, which slowed barge loading and delayed blending activities. These challenging conditions have also pushed river freight rates higher due to the increased risk of vessels becoming grounded.
Naphtha Demand Rises
The sharp drop in naphtha stocks was a result of several factors, including increased use in gasoline blending and stronger inland demand. According to Insights Global, two cargo shipments departing for Venezuela also contributed to the significant weekly decline.