In 2025, despite a 20% drop in oil prices, the world’s largest oil firms saw stocks rise by 4% to 18%, breaking the usual correlation between crude prices and oil stocks. Investors valued the strategic shifts of European majors focusing on upstream production, record-breaking Permian output, and cost-cutting measures.

Last year, Big Oil saw cost cuts and record-high cash flows, with layoffs and efficiencies boosting profits. Exxon and Chevron led the way with mergers and job reductions. However, with oil prices expected to remain low, analysts predict a potential end to the share price rally.

Amid layoffs and cost cuts, Exxon, Chevron, and BP are slashing thousands of jobs to streamline operations and enhance profitability. The companies aim to reduce inefficiencies and high costs to maintain shareholder payouts at lower oil price levels than in the past.

As Big Oil faces a more challenging 2026 with lower oil prices and oversupply, companies like Exxon and Shell anticipate lower earnings in the fourth quarter due to weak trading and reduced margins. Investors may react to potential cuts in buybacks, impacting share performance against crude price trends.

Read more at Yahoo Finance: When Oil Falls but Exxon and Chevron Don’t