French strikes shut in refineries

OREANDA-NEWS. May 30, 2016. Four out of Total's five refineries in France had gone off line by 27 May because of industrial action. Only the firm's 160,000 b/d La Mede facility was operating, albeit at reduced rates.

The shut-ins affected gasoline and middle distillate production the most, with gasoline and jet fuel margins firming to multi-month highs, as strike-induced shortfalls coincided with preparations to meet peak summer demand.

Diesel margins also firmed. All of Total's storage sites were operating normally on 27 May, but shipping movements were disrupted because of blockades around terminals. Around 10 crude tankers and at least 16 products tankers were waiting offshore French ports because of the strike. It remains unclear when the industrial action will come to an end.

The country has enough reserves for weeks of industrial action, transport minister Alain Vidalies says. Just three days worth of strategic stocks had been used up as of 25 May, out of 115 available, according to Vidalies.