PARIS, March 23 (Reuters) - The French Energy Ministry has started evaluating the possibility of increasing the capacity of the country's five oil refineries in a bid to soften the impact of the
French Energy Ministry Considers Boosting Oil Refining Amid Price Tensions
France Evaluates Oil Refinery Capacity to Address Market Volatility
Background of the Initiative
PARIS, March 23 (Reuters) - The French Energy Ministry has started evaluating the possibility of increasing the capacity of the country's five oil refineries in a bid to soften the impact of the conflict in Iran on energy prices, it said on Monday.
Focus on Fuel and Diesel Supplies
The ministry is particularly looking into fuel and diesel, it said.
Market Tensions and Price Fluctuations
"There is no risk of supply disruption. However, there is market tension, particularly evident in the sharper rise in diesel prices compared to gasoline prices," the ministry told reporters.
France's Diesel Import Dependency
France imported about 50% of its diesel consumption before the start of the war, it said.
Global Factors Affecting Oil Prices
Impact of the Strait of Hormuz Closure
Prices and supply of crude oil and refined products have become extremely volatile after Iran effectively closed the key Strait of Hormuz, through which about a fifth of global oil and liquefied natural gas flows, in response to strikes by the U.S. and Israel.
Reporting Credits
(Reporting by Forrest Crellin, Inti Landauro, Editing by Charlotte Van Campenhout)
