Storage tanks for oil products in the Amsterdam-Rotterdam-Antwerp (ARA) hub are fully booked, but utilization rates are only at around 50-60% of full capacity, according to a report from Dutch industry consultants. Gasoil and diesel tank utilization stood at 48.73% on April 1, compared to 80% at the beginning of the year.
Traders have been on an oil storage hunt amid lockdowns and movement restrictions that created a free fall in Europe’s fuel demand. The report said that the reason why the tanks are only half full is rising demand from inland markets in Switzerland and Germany for stockpiling.
However, analysts expected that storage would fill to the brim, given the current demand outlook. Oil demand in Europe is expected to fall by 2.3 million bpd or 11.2% year-on-year to 12.7 million bpd in 2020. Meanwhile, road fuel demand in April is forecast to decline by 35% to 4.7 million bpd.
