ExxonMobil, the world’s largest publicly traded oil company, releases its second quarter earnings today. The firm is predicted to undershoot its performance from the previous quarter; estimates show $0.84 per share, as opposed to last quarter’s $0.95 per share.
Exxon’s projections are similar to fellow oil giants Chevron and BP. Share prices for all three companies have generally declined in line with falling prices of oil, which have plummeted 14.3% since the start of 2017.
Beleaguered by this decline, OPEC and non-member producers met in May to extend output cuts until March 2018 to help boost prices. Libya and Nigeria have been counteracting OPEC’s fight against the glut. Both countries were originally exempt from the production cut deal and have produced significantly more than anticipated. Hesitancy from OPEC members to reduce production too much has also kept the glut stocked and prices deflated.
Despite a recent bump which has pulled up stock prices for Exxon, Chevron, and BP, expect oil prices to remain stable. For 2017, the EIA predicts prices to rest at $51 per barrel, only marginally higher than Wednesday’s closing price of $50.89.
Max is Foreign Brief's Chief Executive Officer. A Latin America specialist, Max is an expert in regional political and economic trends, focusing particularly on the Southern Cone.