Exxon, Chevron To Report As Stalling Oil Recovery Forces Tough Choices

Exxon Mobil ( XOM ) and Chevron ( CVX ) reported worse-than-expected Q2 losses Friday and indicated headwinds from low oil prices will continue as the recovery stalls.

Uncertainties over the economic recovery as well as oil and gas oversupply resulted in downgrades to Chevron's commodity price outlook, which produced asset impairments and other charges, said CEO Michael Wirth.

The company also warned that while demand and prices have shown signs of recovery, "they are not back to pre-pandemic levels, and financial results may continue to be depressed into the third quarter 2020."

A separate EIA report found that U.S. energy demand hit its lowest level in 30 years in April due to the coronavirus shutdown as air travel was grounded and millions of Americans worked from home.

Oilfield service provider Schlumberger ( SLB ) reported a 35% drop in Q2 revenue and announced it would cut 21,000 jobs as demand for oil falls during the pandemic.

"Looking at the macro view in the near-term, oil demand is slowly starting to normalize and is expected to improve as government measures support consumption," said CEO Olivier Le Peuch

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