The FTR is in supply, from Palermo. There is plenty of German oil available, and no Axis rail lines are blocked,so the FTR should be able to be reorganized.
I am using both the limited overseas supply rule and the limited supply across straits. There are no units from either side in the Italian Coast sea zone. Therefore, the Axis should be able to trace supply across the straits of Messina, and thus should be able to trace an oil supply line to an oil point. The fact that they can't trace supply through the Italian Coast (and thus Africa is out of supply) is not relevant.
I believe that I reported this bug already a long time ago; since I am not sure about that, I am reporting it again.
Here is a picture of the unit and the oil form; the next post will have a saved game from the German Use Oil step.



