Exxon Mobil Projects Q4 Earnings Drop Amid Oil Glut

Exxon Mobil has projected that lower oil prices and tighter refining margins will result in a significant decrease in its fourth-quarter earnings. The company anticipates a reduction in upstream earnings by $500 million to $900 million due to declining liquid prices, while changes in gas prices might slightly offset this impact by boosting earnings up to $400 million. The oil giant has also signaled a potential $600 million impairment in its upstream business, contributing to an overall reduction in earnings by approximately $1.6 billion from the previous quarter. This downturn occurs amid an oil glut and concerns over global demand, especially following OPEC+'s decision to maintain production cuts. Despite these challenges, Exxon continues to focus on its long-term strategy, including its $60 billion acquisition of Pioneer Natural Resources to expand oil and gas production. The final earnings results are expected to be released on January 31.