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Some news updates on the oil front. The market is now nicely busy at getting its core job of supplying demand once more with the French Government now activating emergency import frameworks to support local supply stocks. Perhaps this is a good reminder that the refined petroleum market, just as any other industrial commodity market, can always benefit from increased cross-border activity.

However, it’s too early to say whether the logistical requirements are all met just yet. Admittedly, the current supply mechanics are built on local refined production so there might be some unexpected kinks still in the pipeline (I’m at an oil pun per article over these posts).

Oh, and then there’s the added problem that France has taken out roughly 1.84 million bbls of oil production from the euro market. Pricing over this has progressed over the past week: the two charts below present Gas Oil and Gas Oil Crack Spread contracts over ICE for last Friday’s trading hours. These are exchange based heating oil contracts but they still present part of the current refined gasoline price moves.

I.C.E. GasOil Crack Spread:

I.C.E. GasOil Contracts:

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