Oil markets have been volatile due to geopolitical developments, with oil prices trading below 52-week peaks. Energy sector earnings growth is at -0.5%, well below market average. Big Oil companies like Exxon have reported lower but robust profits, defying expectations to cut production amid lower oil prices.

Exxon surpassed $14 billion in cumulative cost savings since 2019, targeting $18 billion by 2030. Earnings breakeven point is lower at $40-42 per barrel, increasing resilience to falling oil prices. Chevron posted record global production despite lower profits, leveraging increased production to offset lower crude prices.

European oil majors like Shell leverage volatile oil markets with oil trading, capturing significant spreads. Shell’s U.S. oil trading business generates about $1 billion annually. Exxon and Chevron engage in oil trading on a smaller scale compared to European counterparts. Big Oil continues cost discipline and returning cash to shareholders.

ExxonMobil returned $4.2 billion in dividends and $5.1 billion in share buybacks, while Shell has announced buybacks exceeding $3 billion for 16 straight quarters. Chevron and TotalEnergies distributed $6 billion and $4.5 billion, respectively.

Read more at Yahoo Finance: Why Big Oil Is Still Gushing Profits Despite Low Oil Prices