Crude price crash slams Big Oil
The crash in crude prices and plunging demand for energy slammed Big Oil.
Exxon Mobil posted a $610 million quarterly loss. Profit fell in every business but chemicals, which benefited from the low oil and gas prices. Exxon took an inventory write down of nearly $3 billion.
Its results echo those of rivals Royal Dutch Shell and BP. Lockdowns and business shutdowns triggered by the pandemic have chopped global fuel demand by a third.
Arch rival Chevron managed to pump up its quarterly profit, but that was because it sold assets in the Philippines and Azerbaijan. Revenue fell nearly 11%. Low demand for oil and gas drove the company to slash its capital spending budget by another $2 billion. Chevron’s 30% planned spending cut now matches that of Exxon.
By cutting expenses or boosting borrowing, the oil majors sought to protect their dividends. Exxon and Chevron both kept their quarterly payouts.
Shares of both companies edged lower in Friday morning trading.
