Shipments of petroleum products to France have increased in recent weeks as ports resume operations following protests against the government’s pension reform, allowing for the replenishment of domestic stocks.
The resumption of oil terminal activities in the Mediterranean contributes to the replenishment of strategic stocks
According to Kpler data, gasoline exports from the Amsterdam-Rotterdam-Antwerp hub to France jumped to 104,000 metric tons (mt) in the week beginning April 3, compared with a previous four-week average of 55,000 mt. This represents the largest increase in data going back to 2013. This increase is due to some early shipments, and with the end of the strikes, refineries should be able to meet all demands.
Traders anticipated an increase in diesel flows as oil terminals in the Mediterranean resumed operations. This should help replenish strategic stocks, which were used during the strikes that began in January, causing major delays in the ports. According to local media, about 73 ships were waiting to unload petroleum products and crude at the Fos and Lavera terminals in Marseille. In addition, delays were reported at the CIM key oil terminal in Le Havre.
With the ports open, product flows to France resulted in a slight decrease in inventories at the ARA refining hub during the week ending April 13, according to market sources. Although the port closures affected crude supplies to the few refineries still operating during the strikes, the overall situation was better than it normally would have been because inventories were at a higher than normal level after being replenished following the refinery strikes last fall.
Mixed impact of French strikes on European oil markets
According to Rebeka Foley, oil analyst at S&P Global Commodity Insights, the impact of the French strikes on European product markets was mixed, with increases in gasoline demand and a decrease in diesel demand since late March. “Diesel has declined, despite disruptions in France and refinery maintenance in Europe, due to sufficient ARA inventories thanks to high imports in recent months, the release of strategic stocks in France and poor demand,” Foley said.
The French economy is expected to grow poorly in 2023, at just 0.4 percent, Foley added. “Meanwhile, gasoline demands were boosted by the shift to summer quality and refineries maximizing diesel production,” Foley said. “Demands are expected to remain high as the summer season approaches.”
With the resumption of the country’s largest plant, Gonfreville, this week, the strike that saw four of the six refineries stop processing and the other two reduce throughput appeared to be losing momentum, although national days of protest were still being called by the unions. The impact on refineries was limited during the national day of protests on April 13, with only a small number of personnel joining the protests and blocking product shipments at some refineries without affecting operations.
