Germany launches tender to sell diesel, heating oil and crude oil from strategic stocks
USO•Germany’s national oil stockpiling agency launched a tender to sell diesel, heating oil and crude from strategic reserves, marking the country’s first release since the G7 agreed to draw down emergency stocks. Germany pledged up to 15 million barrels, and lawmakers temporarily lowered the mandatory stockpile minimum from 90 days to 82 days of consumption.
1. First reserve sale
Germany’s national oil stockpiling agency EBV circulated a tender to sell diesel, heating oil and crude oil from strategic reserves. The tender marks Germany’s first release since G7 countries agreed at the start of October to release 100 million barrels from emergency stocks.
2. Release details
Germany pledged to release up to 15 million barrels, the largest contribution from a European nation under the G7 effort, Economy Minister Katherina Reiche said earlier this month. The full volume in Friday’s tender was not immediately confirmed; companies were invited separately to buy different volumes of each product. Germany’s upper house of parliament last week temporarily reduced the mandatory stockpile minimum from 90 days of consumption to 82 days.
3. Diesel price context
The G7 deal, coordinated by the International Energy Agency, included fast-tracking the release of 20 million barrels of diesel. European benchmark diesel futures reached an all-time high premium to crude futures of $95 per barrel in late September and had eased to around $76 as of Friday.
