The coronovirus crisis has reduced oil demand in 2020. Exxon incurred losses of $ 1.1 billion, the company incurred losses in the second quarter, while Chevron incurred losses of $ 8.3 billion.
Nevertheless, the CEOs of both energy giants were not overly optimistic about the future.
“The last few months have presented unique challenges,” said Chevron President and CEO Michael Wirth. “The economic impact of Kovid-19’s response reduced demand for our products and lowered commodity prices.”
Chevron said in its statement that “while there have been signs of improvement in demand and commodity prices, they are not back to pre-epidemic levels,” and the results will likely remain “depressed” in the third quarter.
Exxon Chairman and CEO Darren Woods said “the global pandemic and oversupply situation significantly affected our second quarter financial results with lower prices, margins and sales volumes.”
As a result of this, the company has cut short-term spending, Woods said, adding “the company has identified significant potential for additional cuts” that it will announce at a later date.