The oil giant lowered its oil price expectations through 2050 due to the COVID-19 pandemic.
“COVID-19 has significantly impacted near-term demand, resulting in oversupplied markets and unprecedented pressure on commodity prices and margins."
“The oil industry could take a sustained hit as people stay close to home and forgo typical commutes along with travel plans."
The company cited the demand-sapping coronavirus pandemic and a supply increase due to the oil-price war between Saudi Arabia and Russia.
Fitch Ratings says industry consolidation and profitability should shield carriers from a temporary falloff in demand.
"The disinflationary impact from the [coronavirus] and the crash in oil prices will exert even more downward pressure on prices."
After Monday's epic collapse, prices also got a boost from signs that Saudi Arabia and Russia will resolve their differences over oil production.
"The violence in Libya is captivating the market," one analyst says as the benchmark Brent and WTI crudes hit five-month highs.
The price of WTI crude fell for the 10th consecutive session, the longest streak of declines since 1984.
“It is mostly a fundamentals-driven market, but the icing on the cake is the worry about Iran."
In the first quarter, the benefits of higher oil prices were offset by weakness in Exxon's chemicals and refining businesses.
With the shale boom continuing, the IEA says the U.S. will overtake Saudi Arabia as the world's No. 2 producer.
