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 impacted crude deliveries and reduced French buying interest.
France's crude and condensate imports have averaged just
550,000 barrels per day (bpd) this month, down by almost 50%
from the previous month, Kpler crude analyst Johannes Rauball
said.
"The import decline has seen the country rely on its inventories, with crude stocks easing by 11% since February," Rauball said. Prices of North Sea and Nigerian crude grades have dropped as a result of the strike action. "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.
The Ekofisk North Sea crude grade, produced at a field in Norway where TotalEnergies has equity, relies on France for two-thirds of its export stream, Rauball said.
No Ekofisk cargoes have been discharged in France this
month, Kpler data show.
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)
