Demand for heating oil in Germany has remained weak in the week ending 13 July, on high end-users stocks.
Traded heating oil volumes submitted to Argus fell by almost 10pc on the week in the week ending 13 July. Volumes had already fallen by over 30pc in the week ending 6 July. Consumers previously stocked up on large volumes of product at lower prices in April and then again during the price rise caused by the Iran-Israel conflict.
Potential buyers also waited for the 10 July front-month change for Ice gasoil futures, anticipating a price drop, with a market in backwardation. But nationwide heating oil prices in Germany fell by only €0.80/100l after the switch.
Fuel demand was also subdued because of uncertainty over future price direction, despite the start of summer holidays in Rhineland-Palatinate, Hesse and Saarland.
Low product demand also led to weak orders for barge operators along the Rhine. Shipowners barely raised freight rates for imports from the Amsterdam-Rotterdam-Antwerp (ARA) trading hub, despite loading restrictions for barges because of low Rhine water levels. Domestic production is currently sufficient to meet current demand.
