Oil Market News: Latest on ExxonMobil and BP?

ExxonMobil announced its first annual loss in over ten years. ExxonMobil (NYSE: XOM) reported $ 20.1 billion in 2020, and its first annual loss in at least 40 years. This is the firm's fourth consecutive quarterly loss statement. Exxon has promised not to give up dividend payments, stating that it will reduce spending if oil prices fall below $ 50 per barrel.

ExxonMobil announces carbon emission reduction effort

ExxonMobil (NYSE: XOM) has pledged to spend $ 3 billion on low-emission technologies by 2025, mostly to prevent carbon emissions. Bloomberg notes that most of the efforts are not new and are dependent on government subsidies that have not yet come into effect. Exxon's board of directors are experiencing turbulent times. Exxon announced a change in the board of directors amid pressure from investors to cut spending. The changes came from D.E. Shaw, who had a fairly large position in Exxon. Reuters reported last week that more than 135 investors managing assets of more than $ 2 trillion formed a coalition to put pressure on the oil giant. San Francisco-based investment firm Engine No. 1 said Exxon needs independent board members to get out of the strategy and mentality that has led to value destruction for years. Exxon and Chevron were in talks for a merger in the midst of the pande crisis last year, the Wall Street Journal reported. Such a merger would be one of the largest corporate mergers ever made, given that Exxon and Chevron's current valuations totaled more than $ 350 billion.

BP (NYSE: BP) lost $ 5.7 billion in 2020. This is the first loss of the company in ten years. The company announced that they plan to increase renewable energy capacity to 3.3 GW now and 50 gigawatts by 2030.

  A glimmer of hope for crude oil prices, The oil has had a pretty good start this year, thanks to the launch of vaccinations and Saudi Arabia's commitment to reduce overproduction. The ongoing increase in Covid-19 infections and the pandemic reignited in China shake optimism and aggravate prices. But things seem to be changing according to current supply and demand data forecasts. Goldman Sachs: The oil market is shrinking. In an information note sent to customers on January 31, Goldman Sachs said, “The oil market rebalancing continues to exceed our consensus expectations. Our baseline scenario continues towards demand-driven rebalancing of the oil market.”     Oil Market News: Latest on ExxonMobil and BP? Source: https://finance.yahoo.com/ You may also be interested in: Oil Market by the Numbers