Why ExxonMobil and Chevron Q1 Earnings Are Expected To Fall Despite Rising Oil Prices [Video]

The first-quarter earnings reports for U.S. energy giants ExxonMobil (XOM) and Chevron (CVX) coming this week should confirm that, when it comes to Big Oil, it’s not solely about crude prices.

A global glut in natural gas supplies and moderately lower gasoline prices will likely more than offset any benefits of surging first-quarter crude oil prices for ExxonMobil and Chevron. As a result, both are expected to report a decline in profits compared with last year’s first quarter, according to the consensus projection of analysts compiled by Visible Alpha.

Source: Visible Alpha, Company Filings

The significant year-over-year drop in earnings per share (EPS) expected for the nation’s two largest oil producers seemingly defies the 2024 first quarter’s surge in global oil prices.

West Texas Intermediate (WTI) rose roughly 16% in the first three months of this year amid heightened geopolitical tensions, in sharp contrast to a near 6% decline over …