Oil Giants Face $20 Billion Profit Blow as Crude Dips Below $75 Sparking Fresh Fears

The world’s top five Western oil companies reported a combined net profit of $20.53 billion for Q1 2025, plunging 29% year-on-year. As crude prices continue their downward slide, investor worries over worsening earnings in the months ahead are intensifying.

ExxonMobil led the group with $7.71 billion in earnings, falling a modest 6%, while Shell posted $4.78 billion, down 35%. Chevron’s $3.5 billion profit disappointed investors with a 36% drop. France’s TotalEnergies saw a 32.7% decline, earning $3.85 billion, and BP’s bottom line crumbled by nearly 70% to just $690 million. While ExxonMobil and Shell outperformed market expectations, Chevron fell short. This marks the eighth consecutive quarter of shrinking profits for these oil titans.

The primary driver behind this slump was the sharp fall in crude prices. In Q1, WTI crude averaged $75 per barrel, about $7 lower than a year ago. Brent crude followed a similar trajectory, tumbling roughly 10% from last year. Analysts attribute part of this decline to U.S. President Donald Trump’s recent demand that OPEC slash prices, triggering a selloff. In addition, his aggressive tariff policies have heightened fears of global economic slowdown, putting further downward pressure on energy demand.

The outlook is even more grim. As of April, WTI prices dipped below $70, and are now hovering under $60—a level dangerously close to the breakeven threshold. The Dallas Fed estimates new U.S. oil projects require WTI prices of at least $65 to remain viable. If current price trends persist, U.S. production may contract, making oil majors vulnerable despite favorable regulatory rhetoric.

While Trump’s stance seemingly supports expanded domestic output, companies are caught between falling market prices and rising operational costs, especially for materials. This pincer effect could erode profit margins further in Q2 and beyond.