Shell and Exxon Warn of Weaker Q2 Earnings Amid Oil Price Decline

Posted on July 10, 2025 by The Esbec Team

10
Jul

Big Oil Giants Face Earnings Pressure as Energy Prices Decline

Major oil companies are bracing for significant financial impacts as weakened energy prices squeeze second-quarter profits. Shell and Exxon have both issued earnings warnings this week, signaling broader challenges across the petroleum industry.

Shell fired the first warning shot earlier this week, alerting investors that second-quarter earnings would suffer from reduced trading activity in gas and oil derivatives. The Anglo-Dutch energy giant cited market volatility and decreased trading volumes as primary factors affecting its financial performance.

Exxon quickly followed with its own cautionary announcement, stating that weaker oil and gas prices during the second quarter would “substantially” impact its financial results. The American oil major’s warning suggests the price pressures are affecting operations beyond just trading divisions.

The dual warnings highlight mounting challenges facing Big Oil companies as they navigate volatile energy markets. Lower commodity prices directly impact revenue streams, while reduced trading activity limits opportunities for profit generation through derivatives markets.

Industry analysts are closely monitoring whether other major players like BP, Chevron, and TotalEnergies will issue similar warnings ahead of their quarterly earnings reports. The synchronized timing of Shell and Exxon’s announcements suggests widespread pressure across the sector.

These developments come as global energy markets continue adjusting to shifting supply-demand dynamics and geopolitical uncertainties. Investors are now questioning whether current price weakness represents a temporary dip or signals longer-term market restructuring affecting the entire petroleum industry.