The world’s largest oil companies are braced for their toughest year since the pandemic, as falling crude prices squeeze profits and shake investor confidence ahead of the quarterly earnings season.
This year is set to mark Big Oil’s third consecutive 12-month period of falling profits, which have dropped sharply from the highs of 2022 that followed Russia’s full invasion of Ukraine. The adjusted net income of five of the biggest western oil companies — ExxonMobil, Shell, TotalEnergies, Chevron and BP — fell by about $90bn from 2022 to 2024.
The pressure on the industry has intensified in recent weeks as increased supply from Opec and escalating trade tensions under President Donald Trump have undermined investor sentiment. Brent crude briefly slipped below $60 a barrel this month, with some analysts predicting that prices in the second half of 2025 will be more than a fifth down on last year’s average of $81.