Imports of diesel cargoes into northern Germany are scheduled to increase on the month in June, while supplies remain plentiful inland, with domestic refiners having to lower prices to stimulate demand.
Around 322,000t of gasoil and diesel are forecast to arrive at northern German ports in June, Vortexa data show, up by nearly 25pc compared to May. Half of these shipments come from the US, compared with less than 15pc in May.
The rise in imports contrasts with inland oversupply. The 204,000 b/d PCK refinery in Seefeld-Schwedt, 310,000 b/d Miro and 207,000 b/d Bayernoil facilities have experienced persistent surplus in recent months, particularly for heating oil, according to traders. Compared with northern Germany — which relies mainly on imports alongside volumes from the 103,000 b/d Holborn refinery — products at PCK Schwedt and southern hubs are trading at significant discounts.
Heating oil demand has picked up to a certain degree in recent weeks because of lower prices, traders said. But buyers overall remain cautious, largely limiting purchases to required volumes. Private heating oil tanks remain at their lowest in at least six years, Argus MDX data show.
Pressure on motor fuel supply has eased since early May. Steady agricultural demand and stronger buying interest from end-users after the temporary fuel tax cut took effect in May have helped absorb earlier domestic oversupply.
Spot imports through the Rhine from the Amsterdam-Rotterdam-Antwerp (ARA) hub are currently not economically viable, unlike Baltic inflows. And German refiners are still trying to move product down the Rhine to ARA to relieve inland supply pressure.
