CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

TotalEnergies and Exxon hit by refinery strikes: What impact on oil prices?

By Angela Barnes

14:14, 5 October 2022

Share this article
In this article:
Exxon Mobil
109.93 USD
-1.07 -0.970%
TotalEnergies SE
58.970 USD
-0.435 -0.730%
Oil - Crude
Crude Oil
80.34 USD
-1.07 -1.310%
Natural Gas
Natural Gas
6.212 USD
-0.611 -8.960%

Subscribe to Weekly Highlights

The major market events for the week ahead right in your inbox. Subscribe
​​Signs which read in French as
The impact of the shutdown has seen a small uptick in the share price of Exxon and TotalEnergies – Photo: Getty

TotalEnergies (TTEF) and Exxon Mobil (XOM) continued to have oil production disruptions at their refinery sites in France on Wednesday because of a dispute with employees over pay.

TotalEnergies (TTEF) price chart

Strike action began on 27 September and as a result, more than 60% of France's refining capacity, or 740,000 oil barrels per day (bpd), has gone offline. 

Exxon Mobil has temporarily shut down its two French facilities and limited the supply of refined petroleum products to its customers, while three TotalEnergies’ refineries also halted sending fuel. 

At the time of writing on Wednesday, shares in TotalEnergies traded up 0.47%% to €51.01 – while shares in Exxon were up 3.64% to trade at $95.27.

What is your sentiment on TTEF?

Vote to see Traders sentiment!

Exxon Mobil (XOM) price chart

“The impact of the shutdown has seen a small uptick in the share price of these refineries because this has put further pressure on supply which was already seeing tightness. But due to the planned and controlled nature of the strikes (despite being unpredictable to some extent), the impact is likely to be short-lived, and the longer-term price structure will continue to be determined by the moves in crude oil, mostly with regard to developments in the Ukraine-Russia war and concerns about recession and slowing demand,” Daniela Hathorn, market analyst, said.

Crude oil price volatility

The disruption at the French refineries adds to supply woes as the global energy crisis, particularly in Europe, continues to deepen.

Oil - Crude

80.34 Price
-1.310% 1D Chg, %
Long position overnight fee -0.0024%
Short position overnight fee -0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.03

Oil - Brent

86.01 Price
-1.240% 1D Chg, %
Long position overnight fee 0.0007%
Short position overnight fee -0.0149%
Overnight fee time 22:00 (UTC)
Spread 0.04

Natural Gas

6.21 Price
-8.960% 1D Chg, %
Long position overnight fee 0.0408%
Short position overnight fee -0.0658%
Overnight fee time 22:00 (UTC)
Spread 0.005


23.18 Price
+1.770% 1D Chg, %
Long position overnight fee -0.0182%
Short position overnight fee 0.0065%
Overnight fee time 22:00 (UTC)
Spread 0.040

Europe has been scrambling to source alternative natural gas and crude oil away from Russia since its invasion of Ukraine in February. Russia has responded to sanctions by limiting flows of natural gas to the bloc. However, member states have been weaning themselves off it regardless and a complete EU embargo on crude imports from Russia by sea is also approaching.

Brent crude oil price chart

The supply pressures have caused volatility in commodities markets with traders finding both natural gas and crude oil markets difficult to trade, at times, as geopolitical factors continue to cause price swings. 

US crude oil (WTI) price chart 

Whilst the oil refinery strikes will add to short-term supply woes within Europe, analysts do not expect the reduced production in France to have any greater wider impact on the oil market as France has strategic reserves.

The main market event for oil prices on Wednesday will be the OPEC+ meeting. Members and allies of the group are expected to announce deep output cuts, which could send oil prices back up over the $100 mark.


Related reading

Rate this article

Share this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Commodities news

Still looking for a broker you can trust?

Join the 475.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading