French President Emmanuel Macron has secured commitments for 295,000 tonnes of diesel per month from Gulf nations during his tour of key energy suppliers. This includes 100,000 tonnes from the United Arab Emirates (UAE) and another 100,000 tonnes from Bahrain, according to the Elysée Palace. The additional shipments from Saudi Arabia bring the total to just over 10 percent of France's monthly diesel consumption.
Key Details
Macron's visit, which began on Tuesday, aims to strengthen energy ties amid rising fuel prices linked to the US-Israel war on Iran. The conflict has disrupted global fuel shipments, especially as Iran blockades the Strait of Hormuz, a key route for energy exports. The French president has also visited Kuwait and is scheduled to meet with leaders in Qatar.
In addition to securing diesel, Macron's agreements with Kuwait include commitments for diesel and kerosene supplies to French overseas territories. These supplies will be routed through Oman to avoid the Strait of Hormuz. Experts have raised concerns about the potential impact of these agreements on fuel prices due to ongoing geopolitical tensions in the region. The G7, led by France, has agreed to draw from strategic reserves to ease pressure on oil prices, with plans to release up to 100 million barrels.
Background
Macron's trip reflects a broader geopolitical shift, as noted by Andreas Krieg, a senior lecturer at King’s College London. He stated that the visit shows a “post-American Middle East” where Europe and Gulf nations are increasingly aligned in their interests.
Related coverage: US Diesel Prices Hit Record High Amid Iran Conflict, Oil Prices Dip as Trump Waives Sanctions on Russian Diesel.
The commitments for diesel are likely to provide some relief to French consumers facing high fuel prices. Investors will watch for any changes in fuel prices as these shipments begin to arrive in the coming weeks.
Based on reporting by: aljazeera.com, thelocal.fr