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France Actively Seeking to Replenish Domestic Diesel Stocks

OIL PRODUCTS

The French government wants to replenish fuel inventories that were released around June as part of a globally co-ordinated stock-draw.

  • Bloomberg sources have said the idea is to refill the stocks during October and November.
  • France committed oil products, mostly diesel, as part of the IEA co-ordinated release back in March and April. France pledged 7.88mn bbls.
  • Russia was the second largest supplier of diesel to France in August ahead of the upcoming ban. Saudi is now number one, having replaced Russia.
  • France also faces domestic refining woes, hit by strikes and offline capacity. It currently stands at around 60% out of action though it should mostly return swiftly once strikes are settled.
  • French traders have been seen to be active in trading windows for diesel cargoes and are expected to remain so ahead of winter.

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