The world's hottest oil patches are being produced by Exxon and Chevron
(Bloomberg) -- If you want to understand why the two largest US oil companies are together spending in excess of $100 billion on acquisitions right now, look no further than the amount of crude they’re extracting from the two hottest oil fields on the planet.Most Read from BloombergPlunging Home Prices, Fleeing Companies: Austin’s Glow Is FadingApple Intensifies Talks With OpenAI for iPhone Generative AI FeaturesWall Street Humbled as Fast-Reversing Markets Confound the ProsThe Long, Slow Death
The energy sector (XLE) is underperforming in Friday's trading session, following disappointing results from industry leaders Exxon Mobil (XOM) and Chevron (CVX). S&P Global Vice Chairman Daniel Yergin joined Yahoo Finance to discuss the geopolitical risks looming over the oil market. Yergin acknowledges that the current calm within the oil market will "entirely depend" on exogenous events. He notes that oil prices have reverted to levels pre tensions between Iran and Israel, which initially caused a slight uptick: "There's been a tug-of-war between geopolitics and the fundamentals of supply and demand," Yergin says. "In terms of the oil industry, they're commercial animals," Yergin tells Yahoo Finance, adding, "Their incentive is to produce as much as they can." However, he cautions that concerns about future production softening persist within the industry. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith