European markets rise as UK suspends competition law to get fuel to petrol stations - Yahoo Finance

European markets rose on Monday morning after a frenetic weekend in the UK which saw several petrol pumps empty of fuel and massive queues where it was still available even as ministers appealed to avoid "panic buying."

The spiralling petrol crisis also forced the government to suspend competition law via the Downstream Oil Protocol to help oil companies to work together to deliver fuel to petrol stations that are running dry. The protocol would help fuel producers, suppliers, hauliers and retailers to prioritise the delivery of fuel to the parts of the country and strategic locations that are most in need.

The UK's business secretary Kwasi Kwarteng agreed to temporarily exempt the industry from the Competition Act 1998 after a meeting with oil companies and retailers on Sunday. This will allow oil companies to share information and optimise supply without risking breaching competition rules.

The FTSE 100 (^FTSE) in London was up 0.62%, the CAC 40 (^FCHI) in Paris ticked up by 0.53%, and the DAX (^GDAXI) rose by 0.90% after an inconclusive result in the German election on Sunday.

Angela Merkel's Christian Democratic Union (CDU) came second behind the Social Democratic Party (SPD) which received the largest share of the vote. The SPD got 25.7% of the vote while chancellor Merkel's CDU/CSU bloc (CDU's political alliance with the Christian Social Union) got 24.1%. The Greens are in third place, with a record 14.8% vote, putting them in a key position when it comes to forming the government. The verdict means the parties will need to form a coalition, with negotiations that could take months. "Markets are not likely to be concerned for now," said UBS analyst Paul Donovan.

In the UK, meanwhile, according to some media reports prime minister Boris Johnson is considering using the army to deliver fuel to petrol stations across the country. Johnson is expected to consult senior members of the cabinet about "Operation Escalin," an existing Ministry of Defence contingency plan to ensure petrol stations don't run dry in the event of a supply crisis.

source: https://finance.yahoo.com/news/uk-petrol-stations-markets-competition-law-082619175.html

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