Higher Oil Prices Could Boost ExxonMobil's Profits By $5 Billion in the Second Quarter. Here's What Investors Need to Know.
ExxonMobil is likely to see a significant earnings boost from high oil prices, but oil prices are already well off their highs.
Overview
ExxonMobil (NYSE: XOM) provided additional information about its second-quarter operations to help Wall Street prepare for its actual earnings release. That isn't a normal event, but then these aren't normal times in the energy sector. Here's what investors need to know.
The geopolitical conflict in the Middle East broke out late in the first quarter. The price of oil rocketed higher, but the financial benefit was minimal in the first quarter. The second quarter will see most of the impact from the energy price spike caused by the conflict. Exxon's pre-earnings update is meant to clarify the potential impact, with some estimates suggesting it could add as much as $5 billion to the company's bottom line.
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Originally published at www.fool.com.