In France, inflation of 6.2% was recorded in September after it stood at 6.6% a month before. Indeed, inflation in France is lower than many countries in the European Union, such as the Netherlands, for example, which recorded inflation of 17% last month, but the situation is still not good. Refinery workers in the country have so far shut down more than 60% of France’s production capacity while demanding an increase in their salaries. The strike came as a result of failed negotiations with a company
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And it started at the end of last month. According to the reports, the strike cut the production supplies of some of the refineries by more than 240 thousand barrels per day. “Our teams are working hard to fill the supply to our stations while ensuring that the existing stock is distributed correctly among the various customers,” the company spokeswoman said last week.
As you know, the situation in Europe is not good at all thanks to the war that continues in Ukraine and the coming winter is going to be cold and painful. “The strike comes at exactly the wrong time, the situation of the distilleries is not good anyway, an increase in the shortage of barrels will only push the prices up,” said Eugene Lindel, an analyst at FGE. France’s diesel inventory back in June stood at 60 million barrels, 15 million barrels below the average of the last five years.
According to estimates, France now has oil reserves that will be sufficient for the demand of Only three months. France, of course, will have to go back to relying on all oil imports in the near future (at least until the disputes are resolved) and with the sharp increase in oil in the last month, which was exacerbated by OPEC’s move, the future is not bright at all. Currently, many gas stations throughout the country are completely empty of fuel and the queues at the stations did succeed Getting supplies is taking longer and longer. The current shortage is so severe that police officers have been stationed at some of the gas stations to make sure that citizens only fill up their cars and not additional tanks as a backup.
These days, the European Union is trying to raise an amount of 600,000 barrels of diesel per day in order to prepare for the coming winter, and the increase in oil prices and the OPEC production cuts do not contribute to this. A few days after the start of the strike in France, the price of a barrel of WTI oil reached a point that we have not seen since the beginning of This year – 76 dollars. The price for the same barrel has now reached a price of 93 dollars, An increase of more than 20% in about two weeks. It seems that all the bad news is not enough as the production of energy through nuclear reactors in France is also at a lower level than usual. Apparently, despite the decrease in inflation in France in the last month, citizens are going to feel a significant increase in prices as we move into the cold winter months.
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