for subscribers

Nowhere to hide for oil giants from doomsday market

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Chicago - Exxon Mobil and Royal Dutch Shell this week reported their lowest quarterly profits since 1999 and 2005, respectively. Chevron’s third straight loss marked the longest slump in 27 years, and BP lodged its lowest refining margins in six years.

Welcome to year two of a supply overhang so persistent it’s upsetting industry expectations that the market would return to a state of balance between production and demand. It’s left analysts befuddled and investors running to the doorways as the crude market threatened to tip into yet another bear market, dashing hopes that a slump that began in mid-2014 would show signs of abating.

Exxon missed analyst estimates by 23 cents a share and fell as much as 4.5% on Friday before recouping some of that decline. Chevron posted a surprise $1.47bn loss after booking $2.8bn in writedowns. The company’s per-share loss of 78 cents was in stark contrast to the 19- to 41-cent gains expected by analysts. BP and Shell registered similarly gloomy outcomes.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
16.58
(+0.81)
ZAR/GBP
21.38
(+1.02)
ZAR/EUR
19.48
(+0.61)
ZAR/AUD
11.93
(+0.39)
ZAR/JPY
0.16
(+0.85)
Gold
1905.79
(+0.95)
Silver
23.81
(+1.98)
Platinum
897.00
(+0.75)
Brent Crude
42.12
(+1.78)
Palladium
2312.00
(+0.85)
All Share
54446.78
(+0.34)
Top 40
50159.14
(+0.23)
Financial 15
10158.72
(+0.86)
Industrial 25
73766.43
(+0.79)
Resource 10
53032.08
(-0.66)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1404 votes
It depends on how the funds are used.
73% - 9094 votes
No. We should have gotten the loan elsewhere.
16% - 2000 votes
Vote