Oil Prices Remain Steady Amid OPEC+ Production Hike Plans

Oil prices remain steady ahead of OPEC+'s decision to raise production levels. The cartel is expected to increase output at its meeting on Sunday. Energy stocks, including Chevron and Exxon Mobil, reported higher-than-expected profits in the second quarter, driven by increased production. However, concerns over US tariffs and global demand continue to impact oil prices.

Oil prices have remained relatively stable as investors await the OPEC+ decision to raise production levels at its meeting on Sunday. Despite the anticipated increase in output, energy stocks, including Chevron and Exxon Mobil, reported higher-than-expected profits in the second quarter, driven by increased production. However, concerns over U.S. tariffs and global demand continue to impact oil prices.

Exxon Mobil (XOM.N), the United States' largest oil producer, beat Wall Street estimates for second-quarter profit, with adjusted earnings of $7.1 billion, or $1.64 per share, surpassing consensus analyst estimates of $1.56 per share [1]. The company's oil and gas production was the highest for any second quarter since the merger of Exxon and Mobil more than 25 years ago. Despite lower crude prices, Exxon's low production costs cushioned the impact, allowing the company to maintain profitability.

Chevron (CVX.N) also reported strong earnings, with adjusted earnings per share of $1.76, beating the Zacks Consensus Estimate of $1.49 per share [2]. The company's revenues for the quarter ended June 2025 were $81.51 billion, missing the Zacks Consensus Estimate by 1.59% but still representing a significant improvement over the previous quarter.

However, concerns over U.S. tariffs and global demand continue to weigh on oil prices. U.S. President Donald Trump's August 1 tariff deadline looms, with uncertainty surrounding countries yet to negotiate a trade deal with the U.S. [3]. The U.S. has cut deals with two-thirds of its top 18 trade partners, but the extension of the trade deal with Mexico for 90 days has not provided much clarity to the market.

Investors are closely monitoring the earnings outlook for Exxon and Chevron, as well as the broader oil and gas industry. The Zacks Rank for Exxon is currently #3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [2]. The Zacks Industry Rank for the Oil and Gas - Integrated - International industry is currently in the bottom 28% of the 250 plus Zacks industries.

As OPEC+ meets to decide on production levels, investors will be watching for any signals that could impact oil prices and the performance of energy stocks. The start of the driving season has led to a decline in gasoline stocks, reflecting higher demand for the fuel [3]. However, the overall outlook for the industry remains uncertain, with concerns over trade tariffs and global demand continuing to influence oil prices.

References:

[1] Reuters. "Exxon beats profit estimates, higher output counters weaker oil prices." August 1, 2025. https://www.reuters.com/business/energy/exxon-beats-profit-estimates-higher-output-counters-weaker-oil-prices-2025-08-01/
[2] Nasdaq. "Exxon Mobil (XOM) Q2 Earnings Beat Estimates." August 1, 2025. https://www.nasdaq.com/articles/exxon-mobil-xom-q2-earnings-beat-estimates
[3] Reuters. "Oil prices fall as Trump's August 1 tariff deadline looms." July 31, 2025. https://www.reuters.com/business/energy/oil-prices-fall-trumps-aug-1-trade-tariff-deadline-looms-2025-07-31/