U.S. oil major Exxon Mobil said on Wednesday that lower crude oil prices could cut its fourth-quarter upstream earnings by about $800 million to $1.2 billion.
Oil prices declined 9.2% during the three months ended December 31, as concerns about oversupply and tariffs outweighed geopolitical risks.
Brent crude futures shed about 19% in 2025, the most substantial annual percentage decline since 2020 and their third straight year of losses, the longest such streak on record. U.S. West Texas Intermediate crude logged an annual decline of almost 20%.
The company said in a regulatory filing that changes in gas prices could affect its quarterly upstream earnings from a negative $300 million to as much as a positive $100 million.
Exxon’s snapshot is closely watched for clues on how the broader oil sector will fare when companies begin releasing quarterly results in a few weeks.
Analysts expect Exxon to report adjusted earnings of $1.66 per share for the fourth quarter, according to data compiled by LSEG.
The company will release results for the final quarter of the year on January 30, the filing showed.
The energy major had posted $5.7 billion in upstream earnings for the third quarter.
(Reporting by Pooja Menon in Bengaluru; Editing by Shilpi Majumdar and Anil D’Silva)