Europe September Crude, Product Stocks Fall
Inventories of crude oil and middle distillates, such as diesel and heating fuel, fell in 16 European countries in September, according to data from Euroilstock, which analysts attributed to a major port strike.
The data released on Monday showed that crude and oil product stockpiles fell 1.9% to 1.124 billion barrels in September from August, at the same time that a port strike disrupted Fos-Lavera, France's largest oil hub. The strike entered its 16th day on Tuesday, raising concerns over further fuel shortages as it forced some refineries to reduce crude runs.
"The lower demand in Fos-Lavera should weigh on crude oil stocks in Europe," said Olivier Jakob from Petromatrix.
The strike caused the partial closure of Total's La Mede refinery on Sunday and could soon hit other refineries.
In France, crude inventories fell on a monthly basis to 8,800 mt in September from 9,100 mt in August and 9,256 metric tons in September last year, the industry monitor's data showed.
On a yearly basis, the data on gasoline inventories showed the largest percentage decline, down 4.2% to 111.61 million barrels in September, although stockpiles were little changed from August.
The marked yearly decline in gasoline inventories in Europe comes despite an increase in refinery utilization rates to 85.52% in September from 82.96% last year.
Middle distillates, including diesel and heating fuel, also showed a draw of 3.9% to 400.50 million barrels in the
year to September.
"We've seen strong demand in German on middle distillates, in particular gasoil demand before winter," a trader said.
