Diesel supply in the region is expected to tighten significantly by April, three trading sources said. CRUDE TUMBLES France's refineries processed around 1 million barrels per day of crude oil in January, roughly 8.4% of Europe's total throughput, according to the International Energy Agency. The strike action has weighed on prices of North Sea and Nigerian crude grades as French buying interest wanes. "WTI cargoes for May delivery compared with April are down by $1.50-$2/bbl, because of that, North Sea is having to price lower to compete," one trader said.
Another trader said that there are rising fears French oil major TotalEnergies will have to re-offer cargoes or stop buying for future demand.
France relies on the Ekofisk North Sea crude grade, produced at a field in Norway where TotalEnergies has equity.
Ekofisk differentials to dated Brent on Friday hit
their lowest since January 2022.
Meanwhile, prices for crude grades from Nigeria, one of
France's top suppliers, have dropped by around $1/bbl in the
past two weeks, traders said.
"It's a buyer's market, with WTI and Azeri crude offered way
down to sell," a trader of West African crude said.
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(Reporting by Ron Bousso, Rowena Edwards, Ahmad Ghaddar and
Noah Browning in London; editing by Jason Neely)