Exxon Predicts $700 Million Hit to Profit From Lower Oil Prices

(Bloomberg) -- Exxon Mobil Corp. said earnings took a hit from lower crude prices and narrowing refining margins during the final three months of 2024.

Oil prices lowered earnings at Exxon’s production division by about $700 million while refining margins reduced profit by a further $500 million compared with the third quarter, Exxon said in a statement Tuesday. Natural gas prices provided a lift of about $200 million while chemical margins shrank.

Exxon’s guidance doesn’t take into account operational performance or changes in production levels but is a sign that the fourth quarter was a tough one for Big Oil. Investors are concerned about the Chinese economy amid ample global crude supplies.

Exxon indicated it will report a $400 million gain from fourth-quarter asset sales, along with charges of the same amount.