Brent crude 1since 85surges, with OXY, XOM and CVX posting mixed results
2026Since the start of the year, Brent crude has 85risen, but 1in quarterly results, Occidental (OXY) posted higher-than-expected earnings, while ExxonMobil (XOM) and Chevron (CVX) saw profits squeezed by hedging costs. Differences in the timing of the oil price surge, the regions to which each company is exposed, and hedging strategies led to differing results.
Brent crude 2026in 1has risen in price since 85. The increase was triggered by geopolitical tensions in the Middle East, with the surge concentrated particularly in 3. Because the oil price surge was concentrated within the quarter, the timing of the benefits varied by company.
Occidental Petroleum (OXY) 1reported earnings per share (EPS) of 1.06dollars in the quarter. This exceeded market expectations of 0.59dollars. The company clearly benefited from higher oil prices.
ExxonMobil (XOM) 1recorded quarterly EPS of 1.16dollars. It exceeded expectations of 1.01dollars, but hedging-related costs were reported as an item weighing on results. Hedging gains and losses affected the quarterly results.
Chevron (CVX) 1quarterly EPS 1.41dollars. It recorded. Estimates of 0.97dollars were exceeded, but it was also noted that hedging costs ate into some of the earnings. The scale and structure of hedging varied by company.
Differences in regional exposure also led to differences in performance. Even in the same oil-price environment, the timing of quarterly earnings recognition varies when production regions and sales structures differ. The report said these factors were 1the cause of the imbalance in quarterly performance.
Companies 2raised their outlook for the quarter. 1The oil-price surge that occurred in the quarter 2could be reflected more fully in quarterly results, according to some observations. However, 1hedging activity in the quarter remains a factor affecting earnings for the time being.
Sources: The Motley Fool
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.