Prime Highlights-
- Macron secures an extra 200,000 tonnes of monthly diesel from the UAE and Bahrain to strengthen France’s energy security.
- France now holds Gulf diesel commitments of 295,000 tonnes monthly, about 10 percent of its consumption, with price cuts planned.
Key Facts-
- France released 10 million barrels of diesel from reserves to cut prices by 5 to 8 percent.
- Kuwait will ship diesel and kerosene to Mayotte and Reunion via Oman, bypassing the Strait of Hormuz.
Background-
French President Emmanuel Macron has secured an extra 200,000 tonnes of diesel per month from the United Arab Emirates and Bahrain during his Gulf tour, the French presidency said on Tuesday.
The Emirates committed to about 100,000 tonnes monthly, while Bahrain is set to supply another 100,000 tonnes after Macron’s stop in Manama. Crowds of schoolchildren waving French and Bahraini flags greeted him on arrival.
Macron is visiting key Gulf energy suppliers to secure oil and diesel and ease prices in France after a weekend of protests over rising living costs. Presidential advisers voiced satisfaction with the volumes, and TotalEnergies chief Patrick Pouyanné, who is traveling with Macron, said the deals would reassure the French.
France has also tapped its reserves for 10 million barrels of diesel, a move meant to lower pump prices by 12 to 18 cents, roughly 5 to 8 percent, starting next month. Counting supplies from Saudi Arabia, Paris has secured 295,000 tonnes of diesel each month, which covers close to a tenth of national consumption.
Kuwait has given clear commitments to supply diesel and kerosene to Mayotte and Reunion, with shipments routed through Oman to avoid the Strait of Hormuz. Talks are also under way to lower maritime insurance costs for shipping through the strait.
The four-day tour continues in Kuwait and Qatar, where Macron will also discuss defense cooperation. France and Britain have built an international mission to help reopen the strait once Washington and Tehran reach a deal.
