Traders in Germany bought significantly less heating oil in the week to May 18, after many stocked up when prices fell in the previous week.
Rising prices have dampened demand, and heating oil inventories are at their highest May level in four years.
Traded spot volumes for heating oil reported to Argus fell by almost 45pc on the week as inland prices for heating oil and diesel rose notably in the week for the first time since the end of March.
Spot sales in the week ending May 11 has resulted in national average heating oil inventories above 50pc, according to Argus MDX data. The last time German inventories were more than half full at this time of year was in May 2021. Given the unusually high inventories and rising prices, many heating oil buyers are waiting before becoming active again.
Diesel demand also fell, with traded spot volumes reported to Argus down by 23pc in the week ending May 18. But industrial end-users' inventories are at their lowest May level in five years, according to Argus MDX data.
