Oil products stored independently in the ARA region edge 2pc down on the week to 5.48m tons today as fuel oil inventories – which has a surge by 67pc in the week 15 June – came down. Fuel oil stocks fell by 152,000 tons in the week to 22 June, reflecting higher outflows to Singapore. Two very large crude carriers (VLCCs) have started to load at ARA terminals. A smaller vessel, BP’s Amazon – has left the ARA region on 20 June, carrying 140,000 tons of Singapore bound fuel oil. Product came from France, Italy, Spain and the UK. At least one incoming cargo from the US – an usual supplier of fuel oil to the ARA region – was reported. Gas Oil inventory levels rose by 74,000 tons on the week, to reach their highest level in five weeks, this supported by firmer exports from US Gulf coast.

Inflows came from the ARA region where in tune with a similar trend across Europe. European gasoline spot tankers bookings with West Africa discharge options totalled 552,000 tons for 16-22 June loading, up by 36pc from a week earlier, while spot tanker bookings with transatlantic options remained broadly unchanged at 580,000 tons for 16-22 June. On the supply side, gasoline cargoes came from Denmark, France, Sweden, the Mediterranean, Russia and the UK.

Naphtha inventories rose by 2.2pc on the week, despite increased buying interest from the petrochemical sector. Naphtha’s premium to rival propane feedstock has been narrow and steady over the past few weeks, turning the former into an increasing attractive steam cracker’s feedstock.