ExxonMobil sells Fos sur Mer; Why are oil traders bullish on refining whilst majors divest?

Recent global refinery transactions reflect a trend among oil majors divesting non-strategic assets to focus on high-grade portfolios. In Q3 2024, ExxonMobil sold its French refinery Fos sur Mer and associated fuel terminals to Rhone Energies, a consortium led by Trafigura. This divestment follows the recent trend of traders seizing opportunities to enter the refining and retail markets, whilst oil major look to offload non-strategic, weaker assets from their global portfolios. Additionally, ExxonMobil has also announced plans to shutdown their Gravenchon steam cracker by the end of 2024. What factors are driving oil majors to divest, and what strategic value do traders see in these assets? Which refineries could be the next candidates for divestment? Finally, what impact could steam cracker closures have on refining margins? Please find the pdf report in the ‘Report downloads’ section on the right-hand side’