This happened as tanker traffic through the Strait of Hormuz increased and Saudi Arabia began loading vessels at its Ras Tanura terminal.<\/p>\n
It is an event that indicates major Gulf producers are ramping up their output.\u00a0<\/p>\n
Major Gulf producers ramping up output also sent Brent petroleum down by more than 10%<\/strong>, marking its steepest weekly decline in months.<\/p>\n Both companies now face second-quarter earnings that look nothing like the ones Wall Street priced in two months ago.<\/p>\n Exxon Mobil is trading at $136.12<\/strong>, down approximately 23%<\/strong> from its 52-week high of $176.41<\/strong>.\u00a0<\/p>\n Chevron sits at $169.13<\/strong>, which is down about 21%<\/strong> from its $214.71 peak<\/strong>.\u00a0<\/p>\n Both stocks have declined in five of the past five sessions.<\/p>\n More Energy Stocks<\/strong>:<\/p>\n On June 22, the U.S. Treasury’s Office of Foreign Assets Control published General License X<\/strong>.<\/p>\n General License X is a sweeping 60-day authorization that allows buyers worldwide to purchase Iranian crude with no volume cap.\u00a0<\/p>\n Brent fell more than 3.3%<\/strong> that day, CNBC reported.<\/p>\n According to Bloomberg, Persian Gulf oil exports are back to 75%<\/strong> of pre-war levels.\u00a0<\/p>\n This supply is growing further as Saudi Arabia has restarted oil shipments from its Ras Tanura port.<\/p>\n As a result, the war situation that drove both Exxon Mobil and Chevron stocks to their 2026 highs is fading faster than analysts expected.\u00a0<\/p>\n hapabapa / Getty Images<\/p>\n<\/figcaption><\/figure>\n Exxon Mobil reported $85.14 billion<\/strong> in Q1 2026 revenue, Yahoo Finance confirmed, marking a 2.4% increase<\/strong> from the same period last year.<\/p>\n Yahoo Finance also reported that Chevron’s revenue remained flat at $47.56 billion<\/strong> compared to the same period.<\/p>\n However, despite stable revenue, Exxon’s net income fell 45% from the same quarter last year, while Chevron’s dropped 36%<\/strong>, according to CNBC. This decline is a result of previous financial hedging.\u00a0<\/p>\n Both companies missed out on maximum profits because they fixed their oil prices before the market jumped above $100.<\/p>\n Now that oil is retreating toward $69<\/strong>, those price locks are no longer in play.\u00a0<\/p>\n Exxon Mobil and Chevron’s upcoming second-quarter profits will depend on current market prices.\u00a0<\/p>\n Earlier in May, CEO Darren Woods said that “the market hasn’t seen the full impact” of the war’s disruption, Barron’s noted.<\/p>\n Today, that protective market cushion is gone.<\/p>\n The Hormuz reopening is only part of what is dampening oil prices.\u00a0<\/p>\n Iraq is threatening to consider all options, including exiting OPEC, if its production quota is not significantly raised, according to FXStreet.\u00a0<\/p>\n The United Arab Emirates has already left the organization, and Middle Eastern producers are racing to ramp up output after months of forced cutbacks.<\/p>\n Related: Chevron surprises investors with eye-catching disclosure<\/strong><\/p>\n As a result, major banks are changing their targets.<\/p>\n Morgan Stanley changed its Brent forecast to $90 a barrel<\/strong>for the third quarter<\/strong> of 2026 and $80 for the fourth quarter<\/strong>, while maintaining overweight ratings on both XOM and CVX.\u00a0<\/p>\n Goldman Sachs also moved its fourth-quarter 2026 Brent estimate to<\/strong>$80<\/strong> and its 2027 average to $75<\/strong>, according to Investing.com.<\/p>\n During a market drop, energy investors are heavily drawn to the dividend floor, which is a company’s financial commitment to maintain steady payouts even when oil prices fall.\u00a0<\/p>\n ExxonMobil and Chevron are currently leveraging this dividend floor to keep shareholders invested.<\/p>\n ExxonMobil pays investors $1.03 per share<\/strong> every three months, the company confirmed. Exxon Mobil also revealed that it is buying back $20 billion<\/strong> of its own shares to boost stockholder value, assuming reasonable market conditions.\u00a0<\/p>\n Meanwhile, Chevron’s quarterly payout is $1.78<\/strong>, a company press release indicated, and it’s targeting $3 to $4 billion<\/strong> in structural cost reductions by the end of 2026, the firm’s newsroom reported.\u00a0<\/p>\n These moves come as the broader oil market faces significant headwinds.<\/p>\n The EIA\u2019s Short-Term Energy Outlook projects global oil demand will fall by 1.1 million barrels per day<\/strong> in 2026.\u00a0<\/p>\n This contrasts sharply with earlier growth forecasts for the year.\u00a0<\/p>\n Until supply and demand stabilize, these dividend floors will soften the blow of market volatility, even if they cannot remove it entirely.\u00a0<\/p>\n Related: Exxon, Chevron investors cautious after oil news<\/strong><\/p>\n #Oil039s #4month #hands #Exxon #Chevron #fresh #problem<\/p>\n","protected":false},"excerpt":{"rendered":" The Iran war handed Exxon Mobil (XOM) and Chevron (CVX) their sharpest stock surge in years.\u00a0 Then the peace dividend arrived, and it had the opposite effect. West Texas Intermediate… <\/p>\n","protected":false},"author":1,"featured_media":9976,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[11857,497,496,1508,6841,8971,766],"class_list":["post-9975","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-4month","tag-chevron","tag-exxon","tag-fresh","tag-hands","tag-oil039s","tag-problem"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/9975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9975"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/9975\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/9976"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}How quickly the trade reversed for Exxon and Chevron<\/h2>\n
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![](\"https:\/\/www.thestreet.com\/.image\/NDA6MDAwMDAwMDAzMDk3Njgy\/chevroncorporationheadquarters_pl_300626.jpg?profile=rss\"){kind=icon}
What Exxon and Chevron’s first-quarter results say about Q2<\/h2>\n
Oil supply is rising faster than the market expected<\/h2>\n
What the dividend floor means for Exxon and Chevron investors<\/h2>\n
What Exxon and Chevron investors should monitor<\/h2>\n
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