German diesel and heating oil sales fell slightly from elevated levels in the week ending 15 August, but demand from the agricultural sector remains high.
Demand from the agricultural sector rose, traders said, as farmers are using the current dry spell to harvest rapeseed, barley and wheat, following persistent rainfall in July. This contributed to support diesel demand last week, which remained near the elevated levels recorded the week before.
Lower domestic prices also supported diesel demand, traders said. The national average diesel price fell by almost 1.30€/100l during the week ending 15 August. Higher gasoil inventories in the US and the Amsterdam-Rotterdam-Antwerp (ARA) trading hub weighed on Ice Gasoil futures.
Lower domestic prices supported heating oil sales, as buying interest from end-users increases in some federal states as autumn approaches, market participants said. But traded spot volumes reported to Argus fell on the week after demand surged the week prior.
Import demand via the Rhine remains weak in mid-August as high domestic refinery production continues to meet demand. Rising barge freight rates for transport from ARA to all Rhine destinations, because of falling water levels, are likely to weigh on import margins.
