Total Energy (TTE.US) refinery profit margin slightly rebounded in Q4, downstream performance will benefit.

French oil giant TotalEnergies (TTE.US) stated in a trading update on Thursday that it expects downstream performance in the fourth quarter of 2024 to benefit from a slight increase in refining margins. In the fourth quarter of last year, the company's refining margin indicator in Europe reached $25.90 per ton, higher than the $15.40 in the previous quarter. The company noted that it expects the exploration and production performance in the fourth quarter to be affected by a $5 drop in oil prices. TotalEnergies' adjusted net profit has declined for five consecutive quarters, reaching a three-year low at the end of September, reflecting the dual impact of disruptions in its upstream business and a significant decrease in refining margins in Europe. Poor trading performance due to a decline in seasonal natural gas demand has also dragged down earnings forecasts for BP p.l.c. Sponsored ADR (BP. US), Shell (SHEL.US), and Exxon Mobil Corporation (XOM.US) this month. Global demand for gasoline and diesel has been lower than expected, while the start-up of new refineries in Asia and Africa has led to oversupply. With global oil demand weak and energy prices stabilizing after rising due to the loss of Russian gas supply in Europe following the Russia-Ukraine conflict, the world's largest oil and gas companies are seeing declining profits throughout 2024, despite record profits in the past two years.