Chevron posted largest quarterly loss since 2001 and Exxon Mobil profit missed expectations. Fred Katayama reports.
Big oil producers got slammed in the second quarter. Exxon Mobil's profit fell 59 percent from a year ago. Chevron posted its largest loss since 2001. Both blamed the slump in crude prices and refining income. David Gaffen leads energy markets coverage at Reuters. (SOUNDBITE) DAVID GAFFEN, REUTERS EDITOR-IN-CHARGE, ENERGY MARKETS NEWS, AMERICA, (ENGLISH) SAYING: "There is some real weakness in the oil industry. Chevron and Exxon coming into this earnings report were already showing a lot of declining, you know, net income, pre-tax profit margins had been down for several quarters in a row. And this quarter shows that continues as well." Exxon's profit from producing oil and gas fell about 85 percent. Shrinking margins yanked down profit at its refining unit. Chevron lost nearly $1.5 billion. The loss in its largest segment, which produces oil and natural gas, widened as the company lost money both in the United States and internationally. Both companies said they're cutting costs to adjust to lower oil prices.