German demand for heating oil, gasoline and diesel remains below trader expectations. Maintenance has begun at Miro's 310,000 b/d Karlsruhe refinery has begun, while Bayernoil ramped up production at its 215,000 b/d Neustadt-Vohburg refinery.
German traders reported an uptick in enquiries for heating oil at the beginning of last week. Around 12,000m³ were reported to Argus on the first two days of the week, compared with an daily average of around 8,000m³ in the second half of March. This may have been in reaction to a rise in Ice gasoil futures and domestic prices.
Quotas for loading heating oil, diesel and gasoline at Neustadt-Vohburg were lifted, indicating that maintenance work at the Vohburg plant had been completed. Diesel prices in the southern region fell to €1.55/100l below the national average. Maintenance work at Karlsruhe is causing prices there to rise, but they remain below the national average.
In western Germany, domestic refinery production is keeping diesel prices at a comparatively low level, making imports along the river Rhine unattractive. The favourable prices in the south and west are an indicator of good regional supply and low demand. Higher prices for middle distillates can be found in the east of Germany, particularly at the refinery sites of Leuna and Schwedt. One reason for this could be exports to Poland.
