Wall Street Boosts Exxon Mobil Forecasts as Refining Margins Soar

The largest refiner among the oil majors, Exxon Mobil will be a key beneficiary of a tight refined products market, analysts said.

Sabrina Valle, Reuters

Wall Street analysts sharply increased their Exxon Mobil Corp. second-quarter profit estimates on July 5, after the largest U.S. oil producer estimated that it earned $5 billion more from selling motor fuels than it did in the first quarter.

“This would be one of the strongest quarters in Exxon’s history,” Credit Suisse analyst Manav Gupta said in a note. “Both downstream and upstream came in better than expectations.”

Oil and gas prices soared in the first half, with crude selling for more than $105/bbl and U.S. pump prices for gasoline surging to about $5 per gallon.

On July 1, the producer signaled fuel, crude and natural gas sales could generate a record quarterly profit of more than $16 billion. The company posted first-quarter adjusted profit of $8.8 billion, excluding a Russia write-down.

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