Low water levels on the river Rhine, which connects the Amsterdam-Rotterdam-Antwerp (ARA) hub to tank farms, have tightened oil product supply in Western Germany, resulting in restricted barge deliveries and inland tank farms being cut off.
The key bottleneck at Kaub saw levels fall below 0.3m last week. At this level, most barges can’t pass, meaning deliveries from ARA to tank farms based along the Upper Rhine and the Main are limited.
This also creates price differentials within Germany as sellers in the west raise prices in response to low supply, and sellers around Karlsruhe cut prices to clear trapped volumes.
Argus reports: ‘Suppliers at the Miro consortium’s 310,000 bbd Karlsruhe refinery in southwestern Germany are facing rising oversupply, because the refinery usually loads some product on barges for delivery either upstream to Switzerland or downstream towards ARA. Both routes are currently constrained.’
