Exxon Mobil reports lowest profits in four years amid dropping oil prices

In the United States, Exxon Mobil and Chevron both reported their second-quarter earnings for 2025, revealing a significant decline in profits compared to previous years. For Exxon, the profit dropped to $7.08 billion, or $1.64 per share, marking the lowest level for second-quarter earnings in four years. This decline is attributed to a slump in oil prices as OPEC+ member countries increased their oil production, causing average prices for a barrel of U.S. benchmark crude to stay below $70, and even dropping below $60 in May. Despite the decrease in profits and revenues, which fell from $93.06 billion to $81.51 billion, Exxon still surpassed Wall Street's profit expectations, which were pegged at $1.49 per share. The company also reported its highest second-quarter production rates since the merger of Exxon and Mobil over 25 years ago, achieving a net production of 4.6 million oil-equivalent barrels per day, an increase from the previous quarter. Similarly, Chevron Corp. reported a profit of $2.49 billion for the second quarter, representing $1.45 per share, and a four-year low as well. After excluding one-time costs, Chevron's earnings amounted to $1.77 per share, which was higher than analysts' expectations of $1.70 per share. However, Chevron also missed revenue expectations with a reported $44.82 billion. Both companies faced challenges due to an erratic global market influenced by the fluctuating oil prices resulting from increased OPEC+ production levels. This increase in production was recently announced by eight members of the OPEC+ alliance, indicating a boost of 548,000 barrels per day in August as they aimed to support a steady global economic outlook and address low oil inventories. The market's response has been mixed, reflecting the broader volatility in global trade policies, particularly from the United States. While the production boosts aim to lower gas prices, the long-term effects on profitability for these oil giants remain to be seen as they navigate the challenging energy market landscape. Overall, both Exxon Mobil and Chevron's second-quarter results illustrate the significant impact of market dynamics on the oil industry, as lower prices and increased production create a complex environment for future earnings potential.