The premium for 50 ppm gasoil barges in the Amsterdam-Rotterdam-Antwerp region has fallen to its lowest level since Platts began assessing it on January 4, 2011 as German demand for heating oil remains unseasonably low.
The FOB ARA 50 ppm barge premium to the front month ICE 0.1% gasoil futures contract was assessed at $1.75/mt, a day-on-day fall of $1.50/mt to the lowest for at least two years, Platts data showed.
"The fall in value does not change anything. It is very very quiet today," a supplier to the German market said Friday.
Low demand has meant very little gasoil leaving the ARA region for Germany, with consumption being met from domestic stocks.
The supplier to the German market said it had not moved any gasoil down the Rhine into Germany for at least three weeks.
Warmer-than-usual weather in December resulted in no reduction in household heating oil stocks, with inventory levels on January 1 heard to be unchanged for December 1 at 59%, market sources said.
"I think domestic stocks were higher than we have been told," a trader said.
Outright values have also risen over the week, discouraging end users further from buying despite the strong euro offsetting some of the dollar/mt climb.
The FOB ARA 50 ppm barge value was assessed at $995.50/mt Thursday, the highest since October 31, 2012 when it was assessed at $1,000.25/mt. But on a euro basis this was only the highest assessed outright value since Tuesday at Eur735.807/mt.
"The high euro is not enough," a trader said, referring to the stronger Eur/USD exchange rate being not enough to stimulate German buying.
