The Curious Case of Rising Oil Fortune
The international oil benchmark, Brent Crude, fell from a peak of $115 per barrel in June 2014 to as low as $27 in January 2016.
The recovery in the oil and gas industry gained momentum last year as global oil companies: Royal Dutch Shell, ExxonMobil and Chevron, reported stronger-than-forecast earnings. But years preceding that, the global economy faced one of the largest oil price declines in modern history with price per barrel falling as low as $27 in January 2016.
“In analysis of financial results of some of the world’s top oil companies showed that 2018 was a great year as they generated more cash. Reenact- ing 2018, 2019 looks even more promising for oil firms.”
The slump in the price of oil had far-reaching impact on the global oil industry as most firms slashed costs and put projects to the sword after reporting huge declines in profits, and even losses. By Q2 of 2016, ExxonMobil Corporation and Royal Dutch Shell Plc, reported their lowest quarterly profits since 1999 and 2005 respec- tively; signaling a rise as the industry turned the corner on the back of the rally in crude prices.
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