ARA oil-storage growth on refining and trade trends

Long-haul oil trade is driving up storage volumes at the big ARA ports faster than consumption, Martin Quinlan writes

INDEPENDENT storage operators in the Amsterdam-Rotterdam-Antwerp (ARA) area are benefiting from the shifting focus of world refining and trading. As long-haul exports from the refineries of Asia and the Middle East increase, so does the demand for storage capacity serving Europe’s main markets. Accordingly, flows through the ARA ports were strong in 2010. With demand by contango-traders – holding refined products to lock-in futures prices higher than prompt prices – also high at times, capacity was strained. New facilities are under construction at all three of the main ports. According to the Port of Rotterdam Authority, flows of oil products through the port – imports and exports – tota