Tough Times for Oil Companies Trying to Survive the Pandemic

By Alex Mills   May 12, 2020 Just a few years ago the head of ExxonMobil had to appear before a Congressional committee to explain their billions of dollars in profits that some called “obscene.” This week investors in ExxonMobil are asking why the company did not make any profit during the first quarter of 2020. Its $610 million dollar loss is the first time that ExxonMobil reported a loss in more than 30 years. ExxonMobil isn’t the only oil company reporting financial troubles. Actually, there are more losers than winners. The United States Oil Fund, the largest crude exchange traded product, said recently it will sell all of its 30-day contracts to avoid a repeat of the heavy losses that occurred around the expiration of the May contract on April 20 when the price of oil bottomed out at -$37 per barrel. Crude oil inventories continue to rise indicating the oversupply is still expanding. The Energy Information Administration reported on Wednesday inventories increased by 4.6 million barrels from 527 million barrels to 532 million barrels. It is the 14 consecutive week that inventories increased.”....    
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