Key facts
- German heating oil prices fell last week.
- Germany experienced oversupply in its heating oil market.
- Weak demand and high refinery output contributed to Germany's oversupply.
- Domestic German heating oil is displacing imports.
- Singapore's total bunker sales fell 6.8% year-on-year in May.
- Singapore's total bunker sales reached 4.55 million tonnes in May.
- Singapore's May bunker sales recovered 4.5% from April's 14-month low.
- Demand for conventional fuels in Singapore was impacted by the US-Iran war.
- Competition from other Asian ports affected Singapore's bunker sales.
Germany's heating oil market experienced oversupply last week, resulting in falling prices. This situation is attributed to a combination of weak consumer demand and high refinery output. Consequently, domestic heating oil is increasingly displacing imports, indicating a decoupling of the German market from global trends. The market is characterized by a surplus of product, putting downward pressure on prices.
In contrast, Singapore reported a decline in total bunker sales for May, with sales falling 6.8% year-on-year to reach 4.55 million tonnes. Despite this annual decrease, there was a month-on-month recovery of 4.5% from April's figures, which had marked a 14-month low. The demand for conventional fuels in Singapore was negatively impacted by ongoing geopolitical events, specifically the US-Iran war, and increased competition from other Asian ports. These factors contributed to the overall reduction in sales volume.