Spot sales of heating oil in Germany more than doubled last week, driven by falling prices and improved supply conditions on the river Rhine, traders told Argus.
Heating oil prices in Germany dropped by around €2.50/100 litres last week, tracking a nearly $25/t decline in Ice gasoil futures. Increased supply in southwest and southeast Germany added further downward pressure. The price drop prompted a sharp rise in demand from price-sensitive end users.
Last week's rebound in demand followed a period of subdued buying, with spot trades reported to Argus in July falling to their lowest level year-to-date. Many consumers had already stocked up during a price dip in March and April.
Suppliers in the Rhine-Main region are cutting heating oil prices as water levels on the river Rhine rise, easing logistical constraints. Low water levels throughout July had restricted barge movements and limited product deliveries to tank farms along the river.
At the start of August, water levels at Kaub — a key bottleneck — reached 3m for the first time since February, allowing barges to load at full capacity. Levels have since receded but are expected to remain above 1.5m until at least mid-August.
Spot sales of road fuels also rose last week, supported by stronger demand from service stations and the agricultural sector. Recent heavy rainfall had dampened agricultural fuel use.
Diesel imports into northern German ports are also set to rise in August. By 7 August, traders had received nearly as much diesel as in the whole of July. Despite this, overall demand for imported diesel remains low, with domestic production sufficient to meet consumption.
