Consumers in Germany stocked up on middle distillates in the past week because of escalations in the war between Russia and Ukraine.
Sales of heating oil and diesel in Germany ramped up rapidly on 21 November after Russia fired an intercontinental ballistic missile into Ukraine. This reignited concerns among German traders and consumers about the possible effects on availability and pricing of oil products in Europe.
Traded volumes of heating oil reported to Argus went up by 60pc day-on-day on 21 November, while diesel volumes more than doubled as traders and consumers sought to stock up, even as prices rose.
Private heating oil tanks have held their levels throughout November having peaked at just above 62pc at the beginning of the month, two percentage points higher than last year's peak. Industrial diesel tanks dropped below 46pc on 10 November, the lowest in at least four years, although they have since begun to recover slightly.
Diesel imports went up again in November even though imports are largely unprofitable because of high domestic refinery output and demand that is generally low.
Low water levels on the Rhine river make imports by barge even less profitable. Barges that have to pass the Kaub bottleneck on their way to destinations along the Upper Rhine can only carry up to 80pc of capacity after water levels fell again at the weekend.
