Exxon Mobil Warns of Up to $1.2 Billion Hit to Upstream Earnings Amid Falling Oil Prices

2026-01-08 09:19:30

Texas — January 8, 2026. Exxon Mobil Corp. (NYSE: XOM) announced that declining crude prices are expected to weigh heavily on its upstream operations, potentially reducing fourth-quarter earnings by $800 million to $1.2 billion compared with the prior quarter.

In a regulatory filing, the company said that changes in liquids prices were the primary driver of the projected decline. Exxon Mobil also noted that fluctuations in natural gas prices could further impact results, ranging from a negative $300 million to a positive $100 million.

Despite the upstream challenges, Exxon Mobil indicated that stronger performance in its downstream and chemical businesses may partially offset the losses.

Global oil markets have faced persistent weakness, with Brent crude futures falling 19% in 2025 and U.S. WTI crude dropping nearly 20% year-over-year, marking the third consecutive annual decline.

Shares of Exxon Mobil traded around $118.77 following the disclosure, reflecting cautious investor sentiment amid uncertainty in energy markets.