- Tankers pile up off Europe’s coast as onshore storage sites hit limits.
- Nearly 1 million tonnes of refined products are parked on around 30 tankers off Europe’s coast.
- Tankers anchored near to the ARA refining and storage hub and Mediterranean as their cargo owners struggle to find buyers or storage tanks.
- Low water level in the Rhine river has forced barges to be loaded to 50% of capacity, limiting how much they can take to storage sites along the river.
- Oil demand in Europe in 2020 to fall by 2.3 mbpd to 12.7 mbpd, an 11.2% decline from 2019’s 14.3 mbpd and April road fuel demand to fall by 35% to 4.7 mbpd.
Tankers holding jet fuel and gasoline anchored in sea lanes pile up around Europe’s main storage hubs, reaching full capacity, reports Reuters.
Demand collapse
Dozens of tankers holding jet fuel and gasoline are anchored in sea lanes around Europe’s main storage hubs.
Demand collapse due to the coronavirus crisis had hindered the discharge of their cargoes, leading onshore tanks getting full to capacity.
Refined products parked
Europe’s coast
Calculations found nearly 1 million tonnes of refined products are parked on around 30 tankers off Europe’s coast.
Amsterdam-Rotterdam-Antwerp (ARA)
According to shipping data and trade sources, tankers have dropped anchor near to the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub and across parts of the Mediterranean as their cargo owners struggle to find buyers or storage tanks.
Vessels to be moored soon
According to traders, some vessels are expected to be moored soon in ports while others could remain at sea for weeks due to shortage of space left to be leased in onshore tanks.
Traders and shippers say-
- The region is overflowing with products.
- Long delays at tanker terminals in the ARA area, lifting costs for traders chartering the vessels.
- Congestion picked up in the past few days and deals may be impacted.
Low Rhine river water level
Logistical pressure on ARA storage had been added up by low water levels along the Rhine river.
Low water level has forced barges to be loaded to 50% of capacity, limiting how much they can take to storage sites along the river.
Drop in demand
Most of the vessels are carrying jet fuel, gasoline and naphtha, often blended into gasoline, all of which have seen a massive drop in demand after restrictions on movement around the world to curb the spread of the novel coronavirus.
According to data, at least three are carrying diesel.
Tankers leased for offshore storage
According to data, two tankers Stena Polaris and Andrea Victory have been leased in recent weeks by BP to store fuel offshore for two to three months are anchored off the east coast of England. BP declined to comment.
Reduced operations or shut
- Refineries around the world have reduced their operations and in some cases shut down.
- Several European refiners have been unable to unload crude oil cargoes.
Oil demand fall
Consultants Rystad Energy forecast
- Oil demand in Europe in 2020 falling by 2.3 million barrels per day to 12.7 million bpd, an 11.2% decline from 2019’s 14.3 million bpd.
- Europe’s April road fuel demand to fall by 35% to 4.7 million bpd.
The International Energy Agency (IEA) forecast
- A 29 million barrels per day (bpd) fall in April oil demand to levels not seen in 25 years.
- No output cut by producers could fully offset the near-term falls facing the market.
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Source: Reuters
