France says it secured 200,000t more Gulf diesel a month

The French presidency said Tuesday that President Emmanuel Macron had secured an additional 200,000 tonnes of diesel per month from the United Arab Emirates and Bahrain during a Gulf tour.

The Elysee Palace said Macron obtained commitments for about 100,000 tonnes per month from the UAE, while another 100,000 tonnes per month would be secured during a stop in Bahrain later in the day.

With deliveries from Saudi Arabia included, France has commitments for 295,000 tonnes per month, representing just over 10 percent of its consumption, the presidency said.

Macron is visiting the UAE, Bahrain and Qatar as France seeks to secure oil and diesel supplies and lower prices after a weekend of violent protests sparked by rising living costs.

The presidency said Kuwait had also given “very clear commitments” to deliver diesel and kerosene to the French overseas territories of Mayotte and Reunion in the Indian Ocean. It said those shipments would be sent via Oman, bypassing the Strait of Hormuz.

The Gulf region has been in turmoil since February because of the US-Iran war. Crude prices have risen during the conflict as Iran blockades the Strait of Hormuz, the main exit route for Gulf energy exports.

The G7 countries, chaired this year by France, agreed in early October to draw up to 100 million barrels of oil from their strategic reserves to ease pressure. The French presidency said talks were also underway with countries in the region to reduce maritime insurance prices so companies could ship greater quantities through the strait at lower cost.