Diesel and gasoil inventories in the Amsterdam-Rotterdam-Antwerp trading hub increased 1.2% on the week to 2.889 million mt in the seven days to Wednesday, according to PJK International data.
Compared to the same period last year, diesel and gasoil stocks were 11.6% higher, according to the PJK data published late Thursday.
Low water levels on the River Rhine have hindered flows of 50 ppm sulfur gasoil and 0.1% sulfur gasoil to inland Germany and northeast France, driving up ARA distillate stocks.
“Demand in Germany is good but you can’t deliver there at the moment,” said a trader, adding that when the Rhine returns to more normal levels demand should be excellent.
The outlook for barge traffic on the Rhine has improved with forecasts of rain in the region. “Some rain is due over the coming days, this could help,” said a source.
In the Mediterranean, balances could be tightened by supply constraints on the back of refinery issues and planned maintenance at refineries in the region, sources said.
The hydrocracker at the 302,000 b/d Milazzo refinery in southern Italy is currently offline after issues with the plant’s power system last weekend, and it will be running maintenance on the unit and its LC Finer over the coming weeks, according to a source close to the refinery.
For the moment though, talk of the workability of the arbitrage from the ARA region to the Mediterranean remains limited, with freight cited as the most substantial hurdle.
Source: PlattsPrevious Next
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