French fuel shortages rise as unions call for general strike
Quantum Commodity Intelligence – Fuel shortages reported at around 15% of French fuel stations Wednesday as unions called for another general mobilisation over controversial pension reform, while analysts see a potential significant impact on regional supply on a drawn-out struggle.
Shortages are up from around 12% of fuel stations Tuesday, but some regions continue to see over half of fuel stations closed because of two weeks of blockades at France's refineries and many of its oil depots.
No further requisitions were reported following Tuesday's decision to force some oil workers back to work at the Fos oil depot in the south of the country in an attempt to alleviate oil shortages.
That decision ended in violent clashes with police and only seemed to intensify unions' resolve, having called for a day of nationwide strikes Thursday to try and force the government into a U-turn.
Vessel tracking firm Kpler believes the strikes could continue well into next month, given the experience of last Autumn when industrial action crippled France's oil sector and spilled over into wider regional supply issues.
"This scenario estimates a decline of more than 65% y/y in French gasoline and gasoil/diesel supply, with a total reduction in domestic production in Northwest Europe, representing a more marked drop in product supply than last fall."
"This would have a significant impact on refined product balances, particularly for gasoil/diesel, whose imports into France should be closely monitored, as they remain prone to surging over the coming weeks, though the dockworkers' strike could see them arrive via alternative routes."
Distillates sold off on Tuesday after president Macron won two no-confidence votes over bill, and steadied on Wednesday – ULSD cargo cracks seen at $32.73/b at Wednesday's cash close, down around $2/b from six-week highs seen on 20 March.
Distillate cracks hit $60-70/b over ICE Brent during strike action last November.
Macron holds firm
President Macron sought to defend his pension reform Thursday in his first public remarks since he forced the bill through parliament without a vote last week.
"If I had one regret, it was not having succeeded in convincing people about the need for this reform, which does not please me, once again," the president said in interviews with two of France's main television networks.
"But I do not live in regret, will, tenacity, commitment, because I love our country, our compatriots. And so I am at work to be able to do what we have to do."
The comments did not appear to have calmed the situation, the CGT union describing the interview as "outlandish."
"The best response we can give the president is to have millions of people on strike and in the streets tomorrow," head of the CGT Phillipe Martinez said.
The civil aviation has requested 30% of flights be cancelled on Thursday at Paris-Orly airport because of strikes by air traffic control, while disruption is expected across the rail network, domestic energy infrastructure, and different industries including teaching and rubbish collecting.
