Force Majeure In France

27 May 2016: After the oil industry suffered from a severe drought in Venezuela, forest fires in Canada and rebel attacks on oil installations in Nigeria, it is now facing the consequences of a national strike in France, where members of the trade union CGT have organized strikes at the country’s refineries and blocked oil terminals and fuel depots. The situation seems to be worsening as more unions join the CGT and clashes break out between protestors and the police. Six out of France’s eight refineries are either shut down or producing at significantly reduced levels. It is estimated that 40% of the gas stations around Paris and about 20% of the stations nationwide have supply problems. Of the 12,000 gas stations in France, 820 were completely out of fuel last Sunday and another 800 lacked at least one type of fuel according to French transport secretary Alain Vidalies. The overall fuel supply situation has been exacerbated as consumers fill up their car(s) for fear that the country will run out of gas. What will the impact be on the tanker markets (crude and products) if the strikes continue? Download Here