Bloomberg News

Gasoil Stockpiles in Europe Plunge to 3-Year Low, PJK Says

October 27, 2011

(Updates with PJK comment in third paragraph. See PJKI<GO> for the full data series.)

Oct. 27 (Bloomberg) -- Gasoil stockpiles in independent storage in Amsterdam-Rotterdam-Antwerp, Europe’s oil-trading hub, fell to the lowest since the end of 2008, according to PJK International BV. Jet fuel rose.

Gasoil inventories decreased 11 percent to 1.82 million metric tons in the week to today, according to PJK, a researcher based in the Netherlands. That’s the lowest since Nov. 27, 2008. Supplies of the fuel, which includes diesel and heating oil, were sent to France, Gibraltar and the U.K. while cargoes arrived from Russia and the U.S.

Current high prices are causing end-users to draw down stockpiles, Patrick Kulsen, commercial director at PJK, said by phone from Oosterhout.

Gasoil for November advanced 1.7 percent to $969.75 a ton as of 4:31 p.m. local time on London’s ICE Futures Europe exchange. The fuel for December delivery was $10.75 cheaper at $959 a ton. That price structure, known as backwardation, means end-users would rather draw on inventories and replenish stockpiles at the lower prices. The price has been in backwardation since Aug. 8, the longest streak in more than three years.

Gasoline stockpiles rose 14 percent to 656,000 tons, the highest level since July 28, PJK data show. Cargoes arrived from Estonia, France, Spain and the U.K. while product was sent to China, Gibraltar, Guinea, the U.S. and West Africa.

Naphtha stockpiles fell for a second week, dropping 31 percent to 42,000 tons, the data show. That’s the lowest level since Sept. 1. Supplies arrived from Russia.

Fuel oil inventories increased 5.8 percent to 883,000 tons, the most since Sept. 29, according to PJK. Supplies arrived from Lithuania, Russia, the U.K. and the U.S. while a tanker left for Singapore. Jet fuel gained for a third week, rising 25 percent to 609,000 tons, the data show. That’s the highest level since May 5. Supplies arrived from Qatar, South Korea and the United Arab Emirates.

The following table shows the weekly inventory changes in thousands of tons for gasoline, naphtha, fuel oil and jet fuel in independent storage in Amsterdam-Rotterdam-Antwerp.

--Editors: John Buckley, Raj Rajendran

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus