German gasoil prices failed to match last week's gains in Ice futures, as strong domestic refinery production and limited buying interest capped the market.
Ice gasoil futures rose to their highest level since late July, driven by tightening supply in the Amsterdam-Rotterdam-Antwerp (ARA) hub. The rally was supported by scheduled maintenance at Shell's 404,000 b/d Pernis refinery — set to run until the end of November — and upcoming work at TotalEnergies' 338,000 b/d Antwerp refinery in October.
Prices also rose in Germany, but the increase was less pronounced. Refinery utilisation remains high, and a dip in sales volumes suggests limited demand-side support. Spot diesel sales reported to Argus fell by 8pc nationwide after a brief uptick the previous week. Heating oil and gasoline demand also declined, as higher prices and earlier stockpiling curbed consumption, traders said.
Gasoil supply in southern Germany remains tight because of ongoing work on the mild hydrocracker at the 87,000 b/d Neustadt section of the Bayernoil refinery. This has pushed local prices above the national average. Heating oil availability could tighten further from mid-October, when tank space at Bayernoil will be restricted for a few months, the refinery's shareholders said.
Traders in the southeast are increasingly sourcing middle distillates from the 204,000 b/d Schwedt refinery in eastern Germany. The plant is receiving around 3.5 times more Kazakh crude via the Druzhba pipeline in September than in August, helping offset shortfalls caused by Ukrainian attacks on the Russian pipeline system last month. The rise in crude deliveries is putting downward pressure on middle distillate prices at the refinery, traders said.
