en.Wedoany.com Reported - U.S. oil giant Exxon Mobil said on Tuesday that it expects its second-quarter earnings to increase by about $5 billion from the previous quarter, primarily driven by a surge in oil prices following U.S. and Israeli military operations against Iran. The company's refining margins also improved. Investors are focusing on this earnings overview to assess the overall performance of oil companies in the second quarter.

The oil market has been influenced by geopolitical risks related to the Middle East conflict, which began in February. During this period, the Strait of Hormuz, which handles about one-fifth of global oil shipments, was nearly closed for several months. Data shows that the average closing price of benchmark Brent crude oil was $96.68 per barrel between April and June, up 23% from the previous three months. In April, oil prices rose to $109.27 per barrel, the first time since 2012. Exxon Mobil disclosed that upstream business profits could increase by $1.6 billion, while timing effects could boost refining profits by $2.6 billion.

The company suffered billions of dollars in losses in the first quarter due to financial hedges related to cargo deliveries. Exxon Mobil said these positions would be "unwound" and generate profits in subsequent quarters. However, disruptions caused by the war could reduce second-quarter upstream and downstream profits by about $1 billion. Exxon Mobil will report its second-quarter results on July 31. According to LSEG consensus forecasts, analysts expect the company's adjusted profit for the quarter to be $15.7 billion, roughly three times the reported profit in the first quarter. Analysts believe this profit level could draw attention from U.S. consumers. U.S. President Donald Trump has urged oil companies to lower gasoline prices.