Exxon Mobil (NYSE:XOM) shares fell 1.6% in pre-market trading on Thursday, as global crude prices experienced a significant pullback. This drop in oil prices comes amid concerns of a looming European recession and decreasing global demand.
Despite this downturn, Exxon's recent Securities and Exchange Commission (SEC) filing indicates robust Q3 profits, ranging from $8.3 billion to $11.4 billion. A substantial portion of these profits, between $5.2 billion and $6.7 billion, is projected to come from the company's primary oil and gas business.
The anticipated Q3 profits align with analysts' predictions and surpass the company's Q2 results, largely due to a 28.5% increase in West Texas Intermediate (WTI) crude prices during the third quarter. This surge was partly fueled by Saudi Arabia and Russia's efforts within the Organization of the Petroleum Exporting Countries (OPEC) to limit global output.
Exxon Mobil's shares reached an all-time high of $120.70 on September 27, reflecting the impact of these output curtailment strategies. However, with Brent prices dropping over $5 a barrel in recent days, Exxon shares signaled a lower opening bell price of $110.19 on Thursday.
Despite the current market volatility, Exxon's financial outlook remains positive due to its strong Q3 performance. The company is scheduled to release its formal Q3 earnings report on November 3.
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