Heating oil sales in Germany rose in the week to 9 March as prices fell after the US government announced tariffs against trading partners.
Low water levels and strikes significantly restrict barge traffic on the Rhine river and in the canal region.
The US government's announcement of tariffs on imports from Canada, Mexico, and China in the week ending 9 March caused uncertainty in markets and fueled fears of a slowdown in international trade. Ice gasoil futures fell to their lowest since the end of December, and German domestic prices did likewise.
Falling prices revived heating oil demand, despite carnival celebrations in western Germany. Rising temperatures had previously subdued demand. Traded spot volumes reported to Argus rose by 35pc week on week.
Diesel sales are less susceptible to price fluctuations. Volumes fell by 2.5pc nationwide after increased agricultural requirements had already boosted demand the previous week.
Barge supplies are significantly restricted. Low Rhine water levels now limit the permissible cargo volume upstream from the Kaub gauge to about 55pc. This is reflected in correspondingly rising freight rates.
Public sector employees are striking from March 10-12 at various locks on the Rhine-Herne Canal and the Wesel-Datteln Canal. The strike will lead to significant delays in the delivery to many tank farms and subsequent backlogs, shipowners said.
