Consumer diesel demand increased in the week ending 28 February, with higher consumption from the agricultural sector and stable filling station demand. Rising temperatures dampened heating oil sales.
Sellers in agricultural regions reported rising diesel demand. Farmers have been able to spread manure since early February and are now tilling their fields again. Traded diesel spot volumes reported to Argus rose by almost 25pc week on week. Volumes increased by 74pc in Emsland, an especially farming-heavy area in northwest Germany.
Stable demand at filling stations has also been supporting overall demand, traders said. Current school holidays in two German states, and holidays starting in Bavaria today, are further supporting demand from filling station operators. Spot gasoline sales remained little changed from the previous week, with an increase of 3pc.
The situation is different for heating oil, with many traders reporting that rising temperatures across Germany are noticeably dampening demand for the product. The nationwide average price reductions for heating oil compared with the week ending 21 February have not stimulated buying interest. Traded heating oil spot volumes fell by 16pc.
Maintenance work that began on 2 March at the 125,000 b/d Vohburg plant of the Bayernoil refinery, and the closure of the 147,000 b/d Wesseling plant at Shell's Rheinland refinery from mid-March, could reduce supply in the coming weeks.
