German heating oil and diesel demand rose last week despite sharp price volatility as Ice gasoil futures shifted to a new front-month contract.
Nationwide demand was subdued early in the week but picked up in many regions mid-week after the switch, with Ice gasoil futures for the new front month quoted about $60/t lower. German prices fell by around €1.40/100 litres for heating oil and nearly €1.20/100l for diesel.
The futures now more accurately reflect physical supply conditions in northwest Europe, traders said. Independent diesel stocks in the Amsterdam-Rotterdam-Antwerp (ARA) region hit an eight-month high last week. Concerns about possible shortages stemming from the latest sanctions on Russia had pushed prices higher the previous week.
Spot volumes reported to Argus rose on the week by 5pc for heating oil and 7pc for diesel. Consumer concerns about further price increases prompted stockpiling, traders said. Colder weather expected in some regions is likely to boost demand further, although volatility deterred some buyers from additional purchases.
Gasoline demand remained subdued, with term supply covering needs. Spot purchases reported to Argus fell by 27pc nationwide compared with the previous week. Fewer additional spot purchases were necessary than during the holiday season, filling station operators said.
Meanwhile, diesel imports through north German ports so far this month are about 50pc below November last year at 70,000 b/d, all into Hamburg. India supplied 49pc, the Netherlands 39pc and 12pc arrived via Togo — the first deliveries from the west African ship-to-ship transfer hub in at least two years, Vortexa data show. Imports were 143,000 b/d in November last year, around a quarter of which came from the US.
By Johannes Guhlke
