France government collapses with minimal impact seen in crude, chems markets

HOUSTON (ICIS)–Crude and chemical markets have had little reaction so far to developments in France. The government of President Emmanuel Macron fell after members of Parliament (MPs) voted to oust Prime Minister Michel Barnier.

Barnier was appointed by Macron in September and was voted out by a combination of left- and right-wing MPs after the opposition parties objected to the budget put forth by the prime minister, according to French media reports.

Macron has vowed to remain in office until his term expires in 2027 and will need to appoint a new prime minister before work on putting together a new government.

European stock markets closed higher ahead of the vote as investors prepared for the no-confidence vote.

Brent and WTI crude prices fell by more than a dollar, because of expectations that OPEC will extend its output cuts when it meets this week and on US government data showing a build in gasoline and distillate inventories that countered a drawdown in crude oil supplies.