Exxon's US$3.9bn Downstream Sale To Boost Profit Margins

BMI View: ExxonMobil's decision to lessen its exposure to the Japanese downstream represents a strategic retreat. Indeed, despite spiking oil demand in the aftermath of the Tohoku earthquake, consumption of high-margin refined products is unlikely to follow the same pattern, as this type of fuel is not suitable for utilisation in power generation. The sale of downstream assets will, therefore, allow the major to focus on the more lucrative upstream and emerging markets

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