Oil majors gushing in cash despite cheap crude

Peace and Freedom

AFP

© AFP | Oil majors are no longer getting burned by low oil prices

PARIS (AFP) – The prospect of crude remaining near the current $50 level is no longer a doomsday scenario for the world’s oil majors whose latest earnings announcements show that cost-cutting lets them turn a profit even at these price levels.BP, Chevron, ExxonMobil, Shell and Total have all published results in recent days, showing they pocketed $23 billion in net profit in the first half of the year.

Either they increased their earnings or at least returned to profit compared with the same period last year.

With the exception of ExxonMobil they all benefitted from an increase in output from the same period last year, but more importantly they all profited from a rebound in crude prices as OPEC members and Russia agreed to limit production.

The price of the international benchmark Brent crude averaged $51.7…

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