The cif Hamburg 10ppm diesel premium to Ice gasoil futures fell in the week to 1 August when there was sufficient domestic refinery supply and weak demand, particularly for heating oil.
Gasoil barge freight rates are also falling because of rising Rhine River water levels and lacklustre import demand.
Weak buying interest and unrestricted production at the Miro consortium's 310,000 b/d Karlsruhe refinery in the southwest led traders to lower their prices relative to the national average from the second half of July. Heating oil traded at significant discounts in the final days of the month.
Gasoil demand remains weak. Traded heating oil volumes reported to Argus rose by 22pc in the week to 1 August, but nationwide traded spot volumes in July were more than 50pc below those of the same month last year.
Weak gasoil demand and high domestic refinery production are leading to lower need for imports through north German ports and along the Rhine. The cif Hamburg premium fell to $8.75/t, its lowest since 9 July.
Shipowners in Germany have significantly lowered freight rates for gasoil transports from the Amsterdam-Rotterdam-Antwerp (ARA) trading hub to locations on the Rhine, because of rising water levels and a lack of demand for vessels.
