STOCKS DATA: ARA diesel sees biggest weekly draw in 7-mths

Quantum Commodity Intelligence – Diesel held in the ARA region fell for the first in a month this week, as it sank more than 6% on reports of firm inland demand.

Independently-held diesel/gasoil stocks in the Amsterdam-Rotterdam-Antwerp (ARA) blending and trading hub drained 159,000 tonnes to a four-week low 2.3 million tonnes, according to brokers citing Insights Global data.

The weekly draw was the largest since last October, and puts diesel stocks broadly in line with its five-year average for the week – although still more than 50% higher than this time last year.

It comes amid reports of firm inland demand along the Rhine, especially in Germany, where seasonal maintenance is yet to fully unwind.

Most other oil product stocks tracked gasoil lower, gasoline down 4.2% to a three-week low 1.3 million tonnes, as seasonal destocking gathers pace.

Transatlantic gasoline exports remain firm amid tight Atlantic supply, with cargoes seen departing northwest Europe this week to the US and Latin America.

Gasoline stocks are around 9% above this time last year and 13% above their five-year average for the week.

Naphtha fell 10% over the week, likely as a result of blending demand, to 277,000 tonnes, or around 12% below this time last year.

A wide gasoline-naphtha spread has encouraged more blending lately, especially for exports, gasoline assessed more than $230/mt above naphtha on front-month swaps this week for the first time since last August.   

Meanwhile, jet fuel stocks increased 3% on the week to just under 900,000 tonnes, while fuel oil was flat at 1.4 million tonnes.

Jet is currently around 11% above the same time last year, while fuel oil is 24% above the same week in 2022.