Demand for heating oil in Germany rose in the past week, as consumers build stocks in preparation for autumn and winter.
Traders reported a rise in demand as temperatures dropped suddenly and prices were at the lowest since May 2023. Traded spot volumes for heating oil only increased by 3pc on the week, although this does not yet take into account volumes already planned for the coming weeks.
Many traders' logistics are fully booked until the beginning of November. As a result, heating oil is being sold at higher prices and for longer loading periods in wholesale.
After experiencing temperatures above 30°C the previous week, many places saw temperatures drop to around 15°C last week, with the Alps region experiencing snowfall. This sudden onset of autumn led to increased inquiries for heating oil.
Low prices fuelled demand as well. Average national heating oil prices dropped by nearly €3.20/100l, making them the lowest since mid-May 2023 and slightly above prices in December 2021, before the Russian invasion of Ukraine.
These low prices are primarily because of declining Ice gasoil futures and sufficient domestic supply. Shell's 187,000 b/d Godorf refinery, parts of TotalEnergies' 240,000 b/d Leuna refinery and the Scholven section of BP's 257,000 b/d Gelsenkirchen refinery are offline for maintenance or revisions, but sufficient stocks were accumulated earlier to meet current moderate demand, traders said.
