• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs

German Industry Doesn’t Need Additional Oil Reserve Release To Ease Tight Supply

Germany’s oil industry body doesn’t plan at the moment to ask for more releases from the national reserves to ease tight oil product supply caused by logistical hurdles due to decade-low river water levels, a spokesman for the Mineralölwirtschaftsverband (MWV) association told Reuters on Tuesday.

Following a hot summer, water levels in many rivers in Western Europe—including on the key commodity shipping waterway, the Rhine—have dropped to more than a decade low, hampering barge traffic and affecting Europe’s fuel and refined oil products markets.

Last month, the level of the Rhine at a key chokepoint—Kaub in Germany—was at its lowest for the middle of October since at least 2006, Bloomberg reported, citing government data.

At the end of October, Germany’s Economy Ministry said that it had authorized the release of crude oil, diesel fuel, and jet fuel from the national reserves to help areas in the country where supply had tightened due to reduced barge traffic.  

“It is not ruled out there could be a further request but at the moment, it is not the case,” the MWV spokesman told Reuters on Tuesday.

The German state of North-Rhine Westphalia has lifted a ban on tanker trucks on the roads on Sundays, effective November 22 and through May 31, 2019, in order to ease the supply crunch at gasoline stations in the area, the MWV spokesman said.

Due to the shipping restrictions on the Rhine, European heating oil prices could be vulnerable to spikes over the winter, JBC Energy said last month, while researchers at Petromatrix told Bloomberg that Switzerland could resort to releasing strategic fuel supplies in the winter if the critically low levels of the Rhine persist.

The shortage of heating oil in Europe is such that it has driven prices higher and made the arbitrage from as far as Singapore viable, according to traders and analysts who spoke to Reuters earlier this month. Some forecasts say that the low river levels may not recover until January, potentially further distorting the fuel oil market in Europe.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News