Page 36 - Nigeria one mag 4 edition en

Oil production disruptions at TotalEnergies and
ExxonMobil refineries

Exxon gas station

Disputes with employees over wages lead analyst at Capital.com. The disruptions at French
TotalEnergies and ExxonMobil to having oil refineries add to supply difficulties as the global
production disruptions at their refinery sites in energy crisis, particularly in Europe, continues to
France. The strike began on Sept. 27 and has shut worsen.
down more than 60 percent of France's refining Since Russia's invasion of Ukraine in February,
capacity, or 740,000 barrels of oil per day (bpd). Europe has struggled to find alternative sources of
Exxon Mobil temporarily shut down its two French natural gas and crude oil. Russia has responded to the
facilities and limited the supply of refined petroleum sanctions by limiting natural gas flows to the
products to its customers, while three TotalEnergies European Union. However, member states have
refineries also stopped sending fuel. weaned themselves off the gas, and the EU is
At the time of writing on Wednesday, TotalEnergies preparing to impose a complete embargo on crude oil
shares were trading up 0.47% at 51.01 euros - while imports from Russia by sea.
Exxon's shares were up 3.64% to trade at $95.27. Supply pressures have led to volatility in commodity
"The impact of the shutdown has resulted in a slight markets, with traders finding the natural gas and
increase in the share prices of these refineries, as it crude oil markets sometimes difficult to trade as
has put additional pressure on supply, which was geopolitical factors continue to drive prices. While the
already under stress. But due to the planned and oil refinery strikes will exacerbate short-term supply
controlled nature of the strikes (although problems in Europe, analysts do not expect the
unpredictable to some extent), the impact is expected production cut in France to have a broader impact on
to be short-lived, and the longer-term price structure the oil market, as France has strategic reserves. The
will continue to be driven by crude oil movements, main market event for oil prices on Wednesday will
primarily regarding developments in the Ukraine- be the OPEC+ meeting. Members and allies of the
Russia war and concerns about the recession and group are expected to announce significant
slowing demand," said Daniela Hathorn, market production cuts.

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