Gasoline flows to the US and east coast of Canada from Northwest Europe in January so far amount to around 578,000 mt, according to data Monday from cFlow, S&P Global Platts trade flow software.
Only three vessels likely carrying gasoline sailed from Northwest Europe over the past week to go to North America. All are Medium Range tankers and are reportedly heading to New York. This small figure is not surprising considering that US commercial gasoline stocks were still rising steadily.
While negative cash differentials for Eurobob barges and a contango structure in the paper market were incentivising many NWE market participants to keep gasoline in tanks until at least February, according to sources, ample flows leaving the region for West Africa seemed to partly offset a closed arbitrage to the US.
At least 1.2 million mt of NWE oil products likely to be gasoline are expected to land in West Africa in January, up on around 920,500 mt in December, according to S&P Global Platts trade flow software cFlow and industry sources.
At the beginning of the week, expectations that these large flows to West Africa would continue were re-reinforced by news that Nigeria’s Port Harcourt refineries located in the Niger Delta region have been shut down due to a power supply problem.
Meanwhile, fuel shortages in Nigeria were lingering with many gas retail stations in Lagos having again run out of gasoline amid a persistent bottleneck of gasoline tankers at Lagos and other Nigerian import terminals.
Source: PlattsPrevious Next
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