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Latest storage news


Terminal News
November 2, 2017
American Midstream acquires Southcross storage assets
American Midstream Partners has agreed to acquire certain assets from Southcross Holdings including pipelines and storage facilities.Additionally, American Midstream has proposed to merge Southcross Energy Partners into a wholly owned subsidiary of American Midstream Partners...

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American Midstream Partners has agreed to acquire certain assets from Southcross Holdings including pipelines and storage facilities.

Additionally, American Midstream has proposed to merge Southcross Energy Partners into a wholly owned subsidiary of American Midstream Partners. These agreements form two separate transactions totalling $815 million.

Once complete, American Midstream will own and operate integrated midstream infrastructure including:

- 8,000 miles of crude, natural gas and NGL pipelines

- Ten processing plants with more than 1.0 Bcf/d of capacity

- 6.7 million barrels of above-ground liquids storage capacity

Lynn L. Bourdon III, chairman, president, CEO of American Midstream, says: 'This transaction accelerates our transformation into a fully integrated gathering, processing and transmission company focused in select core areas.

'The addition of the Southcross assets allows us to capture the full midstream value chain in the very prolific Eagle Ford basin. The transaction represents a unique opportunity to expand our onshore gathering, processing and transmission services, linking supplies from the economically attractive Eagle Ford shale to high demand growth markets along the Gulf Coast.'



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Terminal News
November 2, 2017
Plains and CVR Refining form pipeline JV
CVR Refining and Plains All American Pipeline have formed a joint venture to acquire a 100-mile pipeline system.The joint venture – Midway Pipeline – acquired the Cushing to Broome pipeline system from Plains. The pipeline connected CVR Refining's Coffeyville, Kansas, refinery to the Cushing hub...

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CVR Refining and Plains All American Pipeline have formed a joint venture to acquire a 100-mile pipeline system.

The joint venture – Midway Pipeline – acquired the Cushing to Broome pipeline system from Plains. The pipeline connected CVR Refining's Coffeyville, Kansas, refinery to the Cushing hub.

Midway will contract with Plains to continue its role as operator of the pipeline.

Separately, CVR and Plains announced that CVR will acquire the Cushing to Ellis crude oil pipeline system from Plains. This system helps link CVR's 70,000 barrel-per-calendar day Wynnewood, Oklahoma refinery to Cushing. This acquisition is expected to close in the fourth quarter of 2017.

Jack Lipinski, CEO of CVR Refining, says: 'These acquisitions ensure long-term access to Cushing-based crude oil for our Coffeyville and Wynnewood refineries, securing our mid-continent edge of sourcing price-advantaged crude.'



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Terminal News
November 2, 2017
Fujairah: Oil product stocks down 1.1% on week
Total refined product stocks at the UAE port of Fujairah stood at 15.895 million barrels in the week to October 30, down 1.1% from the previous week, according to data from the Fujairah Energy Data Committee (FEDCom).While in absolute terms the week on week change was relatively small, stocks of light and middle distillates fell to their lowest levels since the start of Fujairah stocks reporting, S&P Global Platts Analytics said in a report...

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Total refined product stocks at the UAE port of Fujairah stood at 15.895 million barrels in the week to October 30, down 1.1% from the previous week, according to data from the Fujairah Energy Data Committee (FEDCom).

While in absolute terms the week on week change was relatively small, stocks of light and middle distillates fell to their lowest levels since the start of Fujairah stocks reporting, S&P Global Platts Analytics said in a report.

Stocks of light distillates fell by 2.5% week on week to 4.266 million barrels, the data showed. The petrol market is resisting the usual seasonal demand slump in the fourth quarter due to healthy regional demand, according to Platts Analytics. European barrels, which usually flow to the Middle East, have instead been going to West Africa due to very healthy demand there. In Asia, recent tenders from Indonesia, Vietnam and Sri Lanka have added to regional demand.

Stocks of middle distillates fell by 9.5% week on week to 2.245 million barrels, the data showed.

Stock levels remained below 3 million barrels for the seventh week in a row, although supply fundamentals could lean towards more supply and higher stocks levels over the next few months, Platts Analytics said.

Additional spot supplies of gasoil have emerged as the bulk of current refinery maintenance in both the Middle East and Asia will soon be completed, it added. Stocks of heavy distillates and residues rose by 1.8% to 9.384 million barrels, but remained below 10 million barrels for a fifth consecutive week.

The fourth quarter typically sees a pickup in regional bunker demand, but demand in Fujairah is likely down year on year due to regional politics and reduced regional crude exports due to OPEC production cuts, Platts Analytics said.



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Terminal News
November 1, 2017
Blueknight Energy Partners is set to acquire two asphalt storage facilities in Oklahoma and Georgia for $32.5 million.The facility in Bainbridge, Georgia, will be acquired from Ergon Asphalt & Emulsions and Ergon Terminalling. As part of the deal, Ergon will assign a long-term storage, throughput and handling agreement with a third-party for the facility...

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Blueknight Energy Partners is set to acquire two asphalt storage facilities in Oklahoma and Georgia for $32.5 million.

The facility in Bainbridge, Georgia, will be acquired from Ergon Asphalt & Emulsions and Ergon Terminalling. As part of the deal, Ergon will assign a long-term storage, throughput and handling agreement with a third-party for the facility.

The Muskogee, Oklahoma facility will be acquired from Frontier Terminal and Cummins Investment Corporation. Blueknight has entered into two third-party storage, throughput and handling agreements associated with the Muskogee terminal.

Both transactions are expected to close in the fourth quarter. Once complete, Blueknight will then own a network of 56 asphalt terminals with a combined capacity of 10.3 million barrels of asphalt and residual fuel oil storage.

The Bainbridge terminal has 200,000 barrels of storage and comes with a long-term contract with a credit-worthy third-party customer. The Muskogee terminal include 500,000 barrels of storage and 245 acres of property, 150 of which the company expects to develop further in the future. The company has entered into two long-term storage, throughput and handling contracts with credit-worthy third-party customers.

Mark Hurley, Blueknight's CEO, says: 'These acquisitions primarily represent the reinvestment of proceeds received from 2017 asset sales and include high-quality, long-term contracts at very reasonable acquisition multiples.'



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Terminal News
October 31, 2017
Sinopec considering US storage projects
Sinopec is considering two US projects to expand storage facilities in the Caribbean and boost Gulf Coast crude oil exports.According to sources quoted by Reuters, one of the projects could involve the company partnering with Freepoint Commodities and ArcLight Capital Partners...

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Sinopec is considering two US projects to expand storage facilities in the Caribbean and boost Gulf Coast crude oil exports.

According to sources quoted by Reuters, one of the projects could involve the company partnering with Freepoint Commodities and ArcLight Capital Partners.

This comes ahead of a business delegation visit by President Donald Trump next week.

The sources have said that the three companies are considering building a pipeline to move shale oil from the Permian basin to the Gulf Coas t. They also said this project also includes the construction of a two million barrel crude oil terminal on a VLCC.

Additionally, Reuters reports that the firms have been exploring an expansion of oil storage at Limetree Bay Terminal in the US Virgin Islands.



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Terminal News
October 30, 2017
New storage terminal for Costa Rica
A new liquid bulk storage terminal is being built in the Port of Caldera, Costa Rica.Caldera Liquid Terminal will be the first terminal to store solvents, alcohol and oils from March 2018 in the port.In its first phase, the $4.6 million terminal will comprise six tanks with 800 m3 of capacity...

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A new liquid bulk storage terminal is being built in the Port of Caldera, Costa Rica.

Caldera Liquid Terminal will be the first terminal to store solvents, alcohol and oils from March 2018 in the port.

In its first phase, the $4.6 million terminal will comprise six tanks with 800 m3 of capacity. This is due to be operational next February.

Work on its second phase will start in April 2018, and is due to be complete by August 2018. This will comprise four additional tanks, each 800 m3. The terminal will offer facilities for the storage and manipulation of bulk liquids.

Fernando Odio, president of the terminal, is reported as saying: 'Costa Rica does not have this kind of infrastructure in the Pacific, although it already does in the Atlantic Coast.

'The main goal is for national and international companies to import liquid bulk products, store them near the port, and distribute them by means of tankers to their respective factories.'



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Terminal News
October 27, 2017
Valero Energy Partners acquires Port Arthur storage assets
Valero Energy Partners (VLP) has acquired a Port Arthur storage terminal from Valero Energy Corporation.The Port Arthur terminal, which VLP has purchased for $508 million, comprises 47 tanks with 8.5 million barrels of storage capacity for crude oil, intermediates and refined petroleum products, which support Valero's Port Arthur refinery...

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Valero Energy Partners (VLP) has acquired a Port Arthur storage terminal from Valero Energy Corporation.

The Port Arthur terminal, which VLP has purchased for $508 million, comprises 47 tanks with 8.5 million barrels of storage capacity for crude oil, intermediates and refined petroleum products, which support Valero's Port Arthur refinery.

The acquisition also include the Parkway Pipeline – a refined products pipeline – which links Valero's St. Charles refinery with the Plantation and Colonia pipeline system in Collins, Mississippi. It has 110,000 barrels per day of capacity, with the ability to expand to more than 200,000 barrels per day.

The transaction is expected to close on November 1.

Joe Gorder, CEO OF VLP's general partners, says: 'We are pleased to continue growing VLP's footprint in the Gulf Coast region.

'This transaction, combined with our organic growth projects, and strong distribution coverage, positions the partnership well to deliver its targeted distribution growth without the need for additional acquisitions.'



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Terminal News
October 26, 2017
Fujairah: Oil product stocks down 6.9% on week
Total refined product stocks in Fujairah stood at 16.08 million barrels in the week to Monday, October 23, down 6.9% from the previous week led by a large draw in light distillate stocks, according to data from the Fujairah Energy Data Committee (FEDCom)...

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Total refined product stocks in Fujairah stood at 16.08 million barrels in the week to Monday, October 23, down 6.9% from the previous week led by a large draw in light distillate stocks, according to data from the Fujairah Energy Data Committee (FEDCom).

Stocks of light distillates at the UAE hub fell by 23.5% week on week to 4.376 million barrels - their lowest total since January 16, driven by continued demand for petrol from Iran as well as for naphtha from Asia, S&P Global Platts Analytics said in a report.

Demand for petrol is currently strong in the Middle East, while supply has been tight due to partial maintenance closures this month at a number of refineries including Petro Rabigh (Saudi Arabia), ORPIC (Oman) and Qatar Petroleum.

Meanwhile, Iran is seeing reduced domestic petrol output due to lower condensate supply as a result of maintenance at the South Pars fields. Stocks of middle distillates fell by 14% to 2.481 million barrels and stock levels remained below 3 million barrels for a sixth week in a row, as regional supply has been impacted by both refinery maintenance and a pull on gasoil from the West, Platts Analytics said.

Stocks of heavy distillates and residues rose by 6.3% to 9.221 million barrels, but remained below 10 million barrels for a fourth week in a row. Stock levels have been drawn down this month partly due to heavy flows of fuel oil to Pakistan. Pakistan State Oil has tendered for a lower total of 195,000 mt of fuel oil loading from Fujairah in November compared to October (520,000 mt), which could see stock levels rise from recent lows.



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Terminal News
October 26, 2017
Saudi Aramco buys stake in Rotterdam storage terminal
Gunvor is selling its stake in the Maasvlakte Olie Terminal in Rotterdam to a subsidiary of Saudi Aramco.Gunvor, one of the largest international trading houses, acquired its stake in the terminal through its acquisition of Gunvor Petroleum Rotterdam in 2016...

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Gunvor is selling its stake in the Maasvlakte Olie Terminal in Rotterdam to a subsidiary of Saudi Aramco.

Gunvor, one of the largest international trading houses, acquired its stake in the terminal through its acquisition of Gunvor Petroleum Rotterdam in 2016. The sale to Aramco Overseas Company (AOC) is part of Gunvor's strategy to further develop its Rotterdam refining operations.

The sale is due to be completed by the end of October.

AOC's investment in the terminal, which is one of the largest oil facilities in the world, will add to its current participation in other facilities in the same area, allowing for expanded offerings in the North West Europe refining hub.

It will complement Saudi Aramco's export activities in Europe, strengthen the company's supply chain and enhance its customer services in the region.

The facility is a joint venture between a consortium including ExxonMobil, BP, Shell and Vopak.



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Terminal News
October 25, 2017
Unplanned supply disruptions at lowest level for five years
Unplanned global supply disruptions fell to the lowest level since January 2012 in September.According to the EIA, over the past six months, unplanned oil supply disruptions have fallen by more than 1.0 million barrels per day, as outages in Libya, Nigeria and Iraq decline...

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Unplanned global supply disruptions fell to the lowest level since January 2012 in September.

According to the EIA, over the past six months, unplanned oil supply disruptions have fallen by more than 1.0 million barrels per day, as outages in Libya, Nigeria and Iraq decline.

Additionally, Canada's disrupted supplies, which reached their peak in April 2017 at 425,000 barrels per day, returned to production in August 2017.

In Libya, rival armed factions have blockaded pipelines and export terminals intermittently since the fall of Gadhafi and his regime in 2011. In fact, the country has had some success in reducing unplanned outages. Crude oil production has restarted at a number of oil fields in the country since the beginning of the year.

However, despite this success, Libya's outages have fluctuated since the summer as a result of repeated flare-ups of disputes between rival groups, pipeline blockades, power failure and other technical issues.

In Nigeria, disruptions fell from an average of 370,000 barrels per day in April to 200,000 barrels per day in September, in part as a result of the Trans Forcados crude oil export pipeline resuming production.

In Iraq, despite disruptions falling to 50,000 barrels per day in September, the outlook for its oil supply from the Kirkuk oil fields remains uncertain due to an offensive by Iraqi security forces in response to the autonomous Kurdistan Regional Government's independent referendum in September.

Outages in non-OPEC member countries have mainly been linked to weather events. A fire at Syncrude's Mildred Lake facility in Canada forced a complete shut down in production, along with outages elsewhere.

Us production also experienced shut-ins as a result of Hurricane Harvey in August.



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Terminal News
October 25, 2017
Vopak launches bunkering service at Singapore terminal
Vopak has launched bunkering services at its Seabarok terminal in Singapore, allowing tankers to refuel at the same time as loading or discharging cargoes.The terminal is located close to Singapore's eastern anchorage, where a significant majority of bunkering activity takes place...

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Vopak has launched bunkering services at its Seabarok terminal in Singapore, allowing tankers to refuel at the same time as loading or discharging cargoes.

The terminal is located close to Singapore's eastern anchorage, where a significant majority of bunkering activity takes place.

The service will eliminate the time needed to move tankers calling at the facility to designated anchorage elsewhere in Singapore for bunkering.

Prior to this new service, tanker vessels needed to sail to the anchorage to receive their bunkers.

Tan Soo Koong, Vopak Terminals Singapore managing director, says: 'This concurrent bunkering makes the scheduling of bunker supply more predictable, and is in line with the Maritime and Port Authority of Singapore's directive to improve port efficiency.'

This service is the result of a collaboration with BW Pacific, Singanju Marine Services, and Unicore Fuel. Vopak says it will be progressively expanded to its other terminals in Singapore.



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Terminal News
October 24, 2017
CLH to supply fuel to five Panama airports
CLH Aviación will supply fuel to five Panama airports and manage their storage facilities after being awarded the tender, organised by the Panama Government.Among other airports, the company will manage the International Airport of Tocumen, which services the Panamanian capital and is considered one of the most important in the continent...

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CLH Aviación will supply fuel to five Panama airports and manage their storage facilities after being awarded the tender, organised by the Panama Government.

Among other airports, the company will manage the International Airport of Tocumen, which services the Panamanian capital and is considered one of the most important in the continent.

The fuel supply contract will also cover the future Terminal 2 at Tocumen, which is estimated to start operations in 2018, and to four airports located inland: Scarlett Martínez, Enrique Jiménez de Colón, Panamá Pacífico and Enrique Malek.

It will also manage the storage facilities at the five airports under a concession scheme for a period of ten years and will also build a new service station in the terminal at Tocumen airport.

This marks the start of the CLH Group's fourth international operation.

José Luis López de Silanes, chairman of the CLH Group, says: 'This transaction represents a boost for the company's internationalisation process and it enables us to be present in the American continent and, from there, to explore new business opportunities in that market, after the projects we are undertaking in Europe and Asia.'



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Terminal News
October 24, 2017
Practical consequences of the EU Seveso rules in Germany
Bettina Enderle, partner at Enderle Environmental Law, outlines the practical consequences of the new EU Seveso rules for operators in Germany Operators of so-called ‘Seveso establishments’ are flabbergasted with new duties under the German implementation of the EU Seveso III rules on the control and prevention of major-accident hazards involving dangerous substances...

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Bettina Enderle, partner at Enderle Environmental Law, outlines the practical consequences of the new EU Seveso rules for operators in Germany

Operators of so-called ‘Seveso establishments’ are flabbergasted with new duties under the German implementation of the EU Seveso III rules on the control and prevention of major-accident hazards involving dangerous substances.

These obligations do not only apply in case of changes to existing installations, but also to their continued and unmodified operation. As the German authorities have started to enforce Seveso compliance, operators should check their obligations and be prepared.

WHAT ARE THE SEVESO RULES?

The EU Seveso legislation addresses major-accident hazards involving dangerous substances, following the disastrous chemical accident in a factory in the Italian town of Seveso in 1976, where a densely populated area of 6 square kilometres was contaminated with dioxine. Also, natural sources of hazards like earthquakes or floods can trigger dangerous environmental impacts in industrial plants. Since the use of large amounts of dangerous chemicals is unavoidable in some industry sectors, the acceptance of such operations requires effective protection of humans and

the environment against potential hazards.

The Seveso rules, therefore, apply to installations in which certain dangerous substances exceeding set thresholds are used or stored. They require that the risks associated with such hazardous substances are minimised, preventive measures are taken and appropriate preparedness and response are in place should major accidents nevertheless happen. The EU Seveso-Directive I* was later amended in light of the lessons learned from later accidents such as Bhopal, Toulouse and Enschede.



WHY ARE THE SEVESO RULES IMPORTANT FOR OPERATORS IN THE EU OR GERMANY?

The EU counts more than 12,000 industrial establishments where dangerous substances are used or stored in large quantities, mainly in the chemical and petrochemical industry, as well as in fuel wholesale and storage (including LPG and LNG) sectors. Germany being very densely populated has, at the same time, the highest number of Seveso establishments in the EU (3,264 in 2015) followed by France, Italy and the UK.



WHY WAS THE SEVESO III DIRECTIVE** ADOPTED?

The EU Seveso I and II Directives marked a quantum leap in increasing the level of protection against hazardous accidents and their consequences throughout Europe. Yet, a review of the effects of the legislation revealed that the overall rate of major accidents had remained stable.

In response to this the EU legislator introduced further obligations for operators of Seveso establishments in order to strengthen the level of protection and prevention of major accidents. Among the most important provisions are notification, information and permit requirements and, as in all current EU environmental regulations, comprehensive provisions on public consultation and participation in decision-making.



WHAT IS IMPORTANT ABOUT THE GERMAN IMPLEMENTATION?

The German implementation happened late, almost two years after the implementation deadline set by the EU Seveso III Directive and under the EU Commission’s threat to initiate infringement procedures against Germany. It introduced – quite unnoticed by the operators – new permit, notification and information requirements spread in the German Emissions Control Act (Bundesimmissionsschutzgesetz, BImSchG) and the Seveso Ordinance (Störfallverordnung, 12. BImSchV).

First of all, the categories and list of named dangerous substances in the annex were reclassified according to the new EU nomenclature for chemical substances and mixtures (CLP-Regulation***). Further, new definitions were introduced such as the appropriate safety distance or the neighbouring establishments as well as new procedures for notification or permitting of relevant changes. Also, provisions on information of the public and authority supervision of Seveso establishments were included.



WHERE DO THE NOTIFICATION AND PERMIT REQUIREMENTS APPLY?

Most importantly, for new Seveso establishments, which may not even need a permit under the German emissions control regulations, a specific Seveso-permit or -notification may now be required. They apply in case of the erection and operation of a new establishment or in case of modifications to an existing establishment which could have significant consequences for major-accident hazards. Also, new developments around establishments, where the siting may increase the risk or consequences of a major accident, can trigger such duty. In all cases the authority must verify whether the changes lead to a first undercut of the appropriate safety distance. If this is the case, a permit procedure with public consultation and participation is required.



COULD YOU EXPLAIN THE CONCEPTS OF APPROPRIATE SAFETY DISTANCE AND NEIGHBOURING ESTABLISHMENTS?

The safety distance is determined in view of the following parameters: Substances involved, accident-scenarios, typical spread or diffusion of the substances in an accident and potentially affected neighbouring establishments.

Relevant neighbouring establishments are on one hand sensitive uses such as residential areas, schools, hospitals or refugee homes and on the other hand prone to increase the risk or the consequences of a major accident. By now only some administrative guidelines on the determination of safety distances exist, but still no binding regulation.

Operators will, in their own interest to save time and expenditure, commission an expert to determine the safety distance which is then submitted to the authority. Obviously, the appropriate safety distance is a flexible concept that has to be adjusted to every individual case. By taking additional preventive measures the operator may shorten the spread and, thus, the required safety distance to sensitive neighbouring uses.



WHAT APPLIES TO EXISTING ESTABLISHMENTS?

Operators of establishments generally covered by the Seveso rules, but not affected by the legal changes had to submit a notification with detailed information by 14 July 2017 to the authority. The new Seveso regulations pose a substantial additional burden on the affected industry, new permit and notification procedures require diligent preparation and involve costs and time. At least the authorities appear to be conscious of the interests involved on both side when applying the new requirements.



REFERENCES

*Directive 82/501/EEC of 24 June 1982 on the major-accident hazards of certain industrial activities, http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:31982L0501&from=EN.

**Directive 2012/18/EU of 4 July 2012 on the control of major-accident hazards involving dangerous substances, http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32012L0018&from=EN.

***Regulation 1272/2008/EU of 16 December 2008 on the Classification, Labelling and Packaging of substances and mixtures, http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32008R1272&from=EN.



Enderle will be talking more about the consequences of the Seveso III Directive on German operators in the afternoon of the first day of the Tank Storage Germany conference on November 29. For more information visit www.tankstoragegermany.com.



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Technical News
October 23, 2017
Phillips 66 & Square Robot in JV over inspection robot
Phillips 66 is jointly developing an autonomous robot that can inspect storage tank floors while product remains in the tank.Jointly working with Square Robot, the companies are developing the untethered robot, which is currently being designed and is expected to be certified for use in a wide range of petroleum products...

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Phillips 66 is jointly developing an autonomous robot that can inspect storage tank floors while product remains in the tank.

Jointly working with Square Robot, the companies are developing the untethered robot, which is currently being designed and is expected to be certified for use in a wide range of petroleum products.

The robot is expected to enter service in mid-2018.

In order to examine tank bottoms, the structures are taken out of service to be drained, opened and cleaned. This robot will be able to automatically survey and map obstacles within a tank while it remains in service. This will create a specific route map allowing maximum coverage of the tank floor.

Using non-destructive testing data gathered, a certified inspector will produce a floor thickness map allowing for a more accurate prediction of a tank floor's remaining life.

Todd Denton, general manager, midstream operations, Phillips 66, says: 'Ensuring the integrity of our equipment is one of our top priorities and we are always looking for innovative new technologies to help us achieve this.

'Our collaboration with Square Robot presents a unique opportunity to develop technology that will enable us to maintain our equipment and minimise disruption to our customers.'



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Terminal News
October 23, 2017
Fujairah: Oil product stocks up 7.9% on week
Fujairah's commercial stocks of refined oil products rose 7.9% to 17.278 million barrels in the week to Monday, October 16, having sunk to a near nine-month low the previous week, as a number of petrol cargoes arrived at the port, according to data from the Fujairah Energy Data Committee (FEDCom)...

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Fujairah's commercial stocks of refined oil products rose 7.9% to 17.278 million barrels in the week to Monday, October 16, having sunk to a near nine-month low the previous week, as a number of petrol cargoes arrived at the port, according to data from the Fujairah Energy Data Committee (FEDCom).

The overall rise was largely due to an increase in light distillates, which rose by 25.6% week on week to 5.72 million barrels.

The petrol market is bullish East of Suez, while a closed arbitrage to the US is likely to make more European petrol available to the Middle East, according to Platts Analytics.

While light distillate stocks jumped, stocks of middle distillates fell back 2.5% to 2.884 million barrels, and staying below 3 million barrels for a fifth week in a row. This is after rising nearly 20% last week.

The latest drop comes as Europe continued to draw in gasoil volumes from India and the Middle East on an open arbitrage. The east-west gasoil exchange of futures for swaps fell to a two-week low of minus $27.34/mt on Wednesday, mainly on a renewed tightening in the European market.

Stocks of heavy distillates and residues in Fujairah edged up 2% to 8.674 million barrels, but this is still well below the average of 10.49 million barrels since the start of the year after large draws in recent weeks.

Bunker demand has been reported as healthy, and this is expected to be supported by a seasonal rise in global refining this quarter, prompting a rise in regional crude and product tanker traffic.



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