OMV CEO Stern confirms cutback in diesel production in favor of kerosene

The OMV CEO also warned of possible price spikes for gas in the coming winter. "Wir sehen ein gewisses Risiko, dass trotz dieser Forward-Kurven, die Gaspreise zum Winter hin nochmals ansteigen", said Stern. For him, it was one of the last major media appearances as CEO of the group.

Leadership change at OMV

Stern announced that he intends to lead the company until the end of August. "Also mein Plan ist – jetzt sag ich's – mein Plan ist: Ich werd hier bei der OMV das bis zum 31. August ordentlich fertig machen und der Emma Delaney übergeben, damit das dort gut weitergeht – und was danach passiert, das sehen wir dann", he said. This refers to the designated successor Emma Delaney, who will take over the position.

The shift in product streams toward kerosene has immediate implications for supply in Bavaria and at Munich Airport, one of OMV's most important kerosene customers. Since less diesel is coming from European refineries, more fuel will need to be imported according to the group.

Impact on Bavaria and Munich Airport

In this context, Stern pointed to a longer-term structural change in Europe: 25 refineries have been closed over the past ten years, and today more fuels than ever are being imported. In his view, the current shift between diesel and kerosene is a continuation of this trend, driven by margin considerations.

Market observers see the measure as a signal that European refineries are increasingly focusing on high-margin products, while conventional fuels such as diesel are tending to lose significance. With its sites in Austria, OMV is an important supplier to the Southeast European and Bavarian markets.

Market reaction and outlook

For the coming months, Stern expects persistently high levels of uncertainty. Should the Strait of Hormuz remain closed for longer, or gas prices rise as he fears, the margin situation could shift in favor of diesel again. Until then, OMV will stick with its flexible management of production.

In conclusion, Stern emphasized that the cutback in diesel production is a temporary response to current price signals and does not represent a fundamental departure from the fuel business. With the change of leadership to Emma Delaney, the strategic direction of the group will need to be reassessed.

OMV declared itself willing, on request, to continue monitoring the development of margins and product streams over the coming weeks and to make adjustments if necessary. Regardless of this, supply to existing customers with diesel would fundamentally be ensured, the company said.