European spot prices mostly fall under rising inventories.

摘要

Spot product prices were mixed but mosdy down in the week to Jan. 27, amid rising stock levels in the Atlantic Basin. ULSD and heating oil prices slipped and margins were kept in check by rising inventories levels on both sides of the Adantic. On Wednesday, the US EIA reported that stocks inched up 0.1MM bbl to 169.2MM bbl, against expectations for a l.OMM-bbl draw, potentially beefing up economics to send arbitrage shipments to Europe. On Thursday, data showed that gasoil inventories in Europe's ARA storage hub increased for the fifth straight week, hitting their highest since Sept. 2016. Demand for heating fuel was up amid a cold snap but consumption remained constrained by low water levels on the Rhine River, which serves as a primary supply route from the ARA hub to inland markets of Germany and Switzerland. Extremely low water levels have hindered barge movements, limiting vessels and driving up freight rates. Demand in France and the Mediterranean was robust. The Med market had been tight recently, as strong demand had coincided with a disruption in supply flows due to weather-related delays in the Black Sea. Jet fuel sentiment came under pressure as weekly inventories surged to a four-month high; however, prompt prices posted a small increase.