German distillate demand rises as prices drop
Demand for distillates in Germany rose last week after domestic heating oil and diesel prices dipped to their lowest level in at least a year.
Traded heating volumes as reported to Argus rose by almost 46pc week-on-week. Diesel volumes increased as well, although less significantly.
A drop in domestic distillate prices encouraged consumers to stock up on product. Heating oil traded around €2.60 cheaper in the national average last week compared to the week before. Diesel traded €3 lower on average.
The price decrease came after Ice gasoil futures fell to their lowest level in about 13 months.
Regional oversupply is putting additional pressure on distillate prices.
The Miro group's 310,000 b/d Karlsruhe refinery in southwestern Germany is producing at a high level. Supply in the region exceeds demand, traders say, especially for diesel.
Maintenance at the 187,000 b/d Godorf plant of Shell's Rhineland refinery began on 26 August. The plant was taken offline for the duration of the works. Operator Shell expects the turnaround to last until mid-October.
Supply in Germany's west could be reduced until the plant is operational again. However, traders can still load product at the refinery's 147,000 b/d Wesseling plant, which is unaffected by the work.
Related news posts
Oil rises as Israel-Hezbollah clash fuels uncertainty
Oil rises as Israel-Hezbollah clash fuels uncertainty
Singapore, 26 August (Argus) — Oil prices have climbed today as tensions escalate in the Middle East following Israel's pre-emptive strike against militant group Hezbollah's positions in southern Lebanon. The potential for wider conflict in the region has raised concerns about oil supply disruptions. As of 05:18 GMT the Ice front-month October Brent contract was at $79.52/bl, higher by 53¢/bl from its settlement on 23 August when the contract ended $1.80/bl higher. The Israeli military launched an air operation involving approximately 100 aircraft to neutralise Hezbollah missile launchers. This action came in response to Hezbollah's attack on Israel, which included hundreds of rockets and drones, marking one of the most severe clashes in nearly a year of continuing hostilities. The timing of these strikes coincided with negotiations in Egypt's Cairo aimed at brokering a ceasefire in Gaza. Hezbollah, backed by Iran, claimed to have fired 320 Katyusha rockets at Israeli targets, describing this as the initial phase of retaliation for Israel's elimination of a high-ranking Hezbollah commander the previous month. While Israel's foreign minister Israel Katz stated that the country was not seeking a full-scale war, Israeli prime minister Benjamin Netanyahu issued a warning, suggesting that further action might be forthcoming. Houthis add to threats Adding to the regional tensions, Yemen's Houthi rebels, also supported by Iran, expressed support for Hezbollah's actions and reiterated their own threats against Israel. The situation in the Red Sea remains precarious, with the Houthis claiming responsibility for an attack on a Greek-flagged oil tanker, the Suexmax Sounion . This incident has not only raised shipping security concerns but also poses potential environmental risks in the area. The Houthis on 23 August posted a video of what they said was an explosion set off by its fighters on the Sounion , carrying 150,000t (1.1mn bl) of crude. The stricken tanker, which is adrift and unmanned, is "both a navigational and an imminent environmental hazard", according to the EU's naval force Operation Aspides, an EU defensive maritime security operation under the EU Common Security and Defence Policy. By Janet Ong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Union plans new rail strike despite order: Update
Union plans new rail strike despite order: Update
Adds additional comment from Teamsters Canada Rail Conference Washington, 23 August (Argus) — The status of rail freight in Canada remains uncertain after a Canadian labor union today issued a new strike notice to Canadian National (CN), less than a day after the federal government ordered all parties to participate in binding arbitration. The Teamsters Canada Rail Conference (TCRC) today issued notice to CN that members will go on strike at 10am ET on 26 August. The union had not issued a strike notice to CN earlier this week, but employees could not work yesterday after the CN and Canadian Pacific Kansas City (CPKC) locked them out. The union said it moved to strike to "frustrate CN's attempt to force arbitration", and protect workers' rights to collectively bargain. CN had previously sought a federal order for binding arbitration. The government's back-to-work order yesterday sidestepped the collective bargaining process, and "undermined the foundation on which labour unions work to improve wages and working conditions for all Canadians", union president Paul Boucher said today. "Bargaining is also the primary way our union fights for rail safety — all considerations that outweigh short-term economic concerns," Boucher said. The union was more optimistic in its strike notice to CN this morning. "We do not believe that any of the matters we have been discussing over the last several days are insurmountable." It said it would be available to discuss issues to avoid another work stoppage. CN indicated it was frustrated with the union's action. "While CN is focused on its recovery plan to get back to powering the economy, the Teamsters are focused on returning to the picket line and holding the country hostage to their demands," the railroad said. CN last night had begun implementing a recovery plan to restore service . The union has not yet responded to inquiries about its action today. The office of labour minister Steven MacKinnon declined to comment. Rail operations at CN and CP stopped at 12:01am ET on Thursday after the union launched a strike at CPKC and both railroads locked out employees. That action ended late Thursday afternoon with the federal government directing the Canada Industrial Relations Board (CIRB) to manage binding arbitration on the railroads. CIRB, an independent agency, has not yet said if it will accept the government's order. CN began moving some freight early on 23 August, but the new strike order issued soon by the union today could disrupt those plans. The union has also challenged the constitutionality of MacKinnon's order regarding CPKC operations pending the outcome of a new ruling by the CIRB. CPKC's rail fleet remains parked in the meantime. CPKC said late Thursday it was disappointed in the minister's decision and sought to meet with CIRB to discuss resumption of service. CPKC said the union "refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction." A case management meeting with CIRB occurred last night and another was scheduled for early today. Hearings are also underway to address preliminary issues, the union said. But the Teamsters said it was prepared to appeal the case to federal court if necessary. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Union plans new rail strike despite arbitration order
Union plans new rail strike despite arbitration order
Washington, 23 August (Argus) — The status of rail freight in Canada remains uncertain after a Canadian labor union today issued a new strike notice to Canadian National (CN), less than a day after the federal government forced all parties to participate in binding arbitration. The Teamsters Canada Rail Conference (TCRC) today issued notice to CN that members will go on strike at 10am ET on 26 August. The union had not issued a strike notice to CN earlier this week, but employees could not work yesterday after the CN and Canadian Pacific Kansas City (CPKC) locked them out. "We do not believe that any of the matters we have been discussing over the last several days are insurmountable," the union said today in its notice to CN. It said it would be available to discuss issues to avoid another work stoppage. CN indicated it was frustrated with the union's action. "While CN is focused on its recovery plan to get back to powering the economy, the Teamsters are focused on returning to the picket line and holding the country hostage to their demands," the railroad said. CN last night had begun implementing a recovery plan to restore service . The union has not yet responded to inquiries about its action today. The office of labour minister Steven MacKinnon declined to comment. Rail operations at CN and CP stopped at 12:01am ET on Thursday after the union launched a strike at CPKC and both railroads locked out employees. That action ended late Thursday afternoon with the federal government directing the Canada Industrial Relations Board (CIRB) to manage binding arbitration on the railroads. CIRB, an independent agency, has not yet said if it will accept the government's order. CN began moving some freight early on 23 August, but the new strike order issued soon by the union today could disrupt those plans. The union has also challenged the constitutionality of MacKinnon's order regarding CPKC operations pending the outcome of a new ruling by the CIRB. CPKC's rail fleet remains parked in the meantime. CPKC said late Thursday it was disappointed in the minister's decision and sought to meet with CIRB to discuss resumption of service. CPKC said the union "refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction." A case management meeting with CIRB occurred last night and another was scheduled for early today. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canada rail strike ends by forced arbitration: Update
Canada rail strike ends by forced arbitration: Update
Adds comments from railroads, Canadian Propane Association and background. Calgary, 22 August (Argus) — A Canadian rail strike that started early Thursday morning will be short-lived as the federal government stepped in to force the union and two railroads into binding arbitration. The federal government is now directing the Canada Industrial Relations Board (CIRB) to "assist the parties in settling the outstanding terms of their collective agreements by imposing final binding arbitration," labour minister Steven MacKinnon said Thursday. At 12:01am ET today, Canadian Pacific Kansas City (CPKC) and Canadian National (CN) locked out union members, while the Teamsters Canada Rail conference launched a strike at CPKC . The work stoppage froze ongoing train shipments, even if they have not yet reached their destinations. CN ended its lockout at 6pm ET and initiated its service recovery plan. CN said it is satisfied that the labour action has ended, but it is "disappointed that a negotiated deal could not be achieved at the bargaining table despite its best efforts." CPKC said it would restart operations once it receives orders from CIRB. "Our teams are already preparing for the safe and orderly resumption of our rail network and further details about timing will be provided once we receive the CIRB's order," CPKC said. CPKC chief executive Keith Creel said the railroad regrets that the government had to intervene because he believes in and respects collective bargaining, but "given the stakes for all involved this situation required action." Though the work stoppage lasted less than a day, it may take weeks for rail operations to return to normal. The Canadian railroads last week embargoed shipments of toxic materials and earlier this week stopped loading any new railcars. Instead it focused on delivering already-loaded trains to their destination. Shippers across North America feared the impact of the work stoppages. The Canadian Propane Association today said that for each day that propane is not delivered, there is a sales loss of C$9.82mn and that would rise to $75.2mn after seven days. Labour minister MacKinnon has the authority under section 107 of the Canada Labour Code to mandate the sides return to the bargaining table, a tool the federal government was reluctant to use until now. By Brett Holmes and Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more