Axel Springer open to role in any potential European TikTok deal, spokesperson says

France has signed a deal to purchase diesel from Saudi Arabia, the UAE and Bahrain, which will not drastically reduce fuel costs for the European nation immediately, according to experts. The three Gulf states will sell France the equivalent of 10% of its usual diesel consumption in the coming weeks, as part of President Emmanuel Macron's regional tour. The goal is to ease the European energy price crisis, which has sparked protests and public anger in France and beyond.

Naeem Aslam, chief investment officer at Zaye Capital Markets, stated that the deal "will not make French diesel cheap overnight, but it can stop it from becoming scarcer and even more expensive." The Gulf supply provides confidence to refiners, distributors and traders that physical barrels are arriving, potentially reducing the scarcity premium before it reaches the pump.

However, Vijay Valecha, chief investment officer at Century Financial, believes the deal will only temporarily ease France's diesel supply shortage, and unlikely to drive a sustained decline in fuel prices. Temporary easing of supply could provide short-term relief, but the wider diesel shortage remains severe, with the International Energy Agency warning that shortages could persist well into 2027.

The deal is significant as a market signal, according to Norbert Rucker, head of economics and next generation research at Julius Baer. Oil product exports from the Middle East are picking up, and refineries in Asia are putting more oil products on the market, helping to ease tightness globally. However, diesel exports from the Middle East are not expected to increase significantly in the near future, as oil product markets remain tight due to an unusually large upswing in refinery maintenance.