German unit of the OMV refinery: There is a large consumption of fuels such as diesel and heating oil in the southern parts of Germany. Critically low water levels in the Rhine River are limiting supplies. Due to the low levels in the Rhine, the OMV Group has increased its fuel imports through the Danube River tenfold.

There is a consumption of fuels such as diesel and heating oil in southern parts of Germany as supplies are tight due to extremely low water levels in the Rhine River, the German refinery unit OMV told Bloomberg on Thursday.

The Rhine River, which runs northwest from Switzerland through Germany, France and the Netherlands to the North Sea, is an important transportation corridor for petroleum products in Europe. Due to heat waves and drought this summer in Europe, river levels are low and have now become too shallow for many oil barges to pass. Austria-based OMV’s German unit has a refinery in southern Germany and told Bloomberg in an emailed response to questions that it “observes a current consumption of heating oil and diesel.” According to Germany’s OMV, the fuel supply scramble is likely the result of “shortages in the market due to the crisis and thus excessive speculation and stockpiling”. Due to low levels in the Rhine, OMV Group has increased its fuel imports through the Danube River tenfold, the company said late last month. Low water levels in the Rhine recently prompted Switzerland to release oil from emergency reserves as it cut mandatory oil stock levels by 6.5%. Switzerland supplies oil through two main routes—via the Rhine and via rail. Low water levels in the Rhine have led to a drastic reduction in the amount of products sent up the river, while cross-border rail traffic to Switzerland is experiencing massive cancellations and delays due to staff shortages and ongoing repair work. he said on July 22. The last time Switzerland reduced its mandatory limit on oil reserves was in the summer of 2018, which was also a very dry summer and the carrying capacity on the Rhine was also significantly reduced.
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