Demand for heating oil and diesel increased in Germany last week as falling temperatures and the end of summer holidays prompted consumers to check tank levels and resume driving. Weak margins continued to deter imports via the Rhine.
Nationwide traded heating oil volumes rose by 30pc in the week ending 14 September compared with the previous week, according to data reported to Argus. Traders said demand increased across many regions, driven by cooler weather and the start of the heating season in several federal states.
Consumer stock levels remain higher than usual for this time of year. The national average was just under 60pc on 10 September, Argus MDX data show — 2.5 percentage points above the four-year average. The elevated stocks stem from stockpiling during the spring, when prices were especially low.
Traded volumes were also 7pc higher than in the same period last year, which could signal lower-than-usual heating oil sales in the fourth quarter.
Diesel demand rose for the first time in five weeks, with traded volumes up by 25pc on the week. Harvesting activity supported sales in some regions, while increased driving after the holidays is also likely to have contributed.
But diesel spot volumes were 8pc below the same period last year, mainly because of reduced truck mileage amid Germany's weak economic performance. The truck mileage index in August fell to its lowest level since December 2023.
Oil product imports via the Rhine remain unviable because margins are negative. September demand for middle distillates has not increased enough to justify imports, while German refineries continue to produce at high levels.
