Exxon profits drop as most of world stays home, forgoes fuel

Profits fell at Exxon Mobil during the first quarter as the global pandemic began to erode oil demand.

The Irving, Texas oil giant lost USD 610 million in the first quarter, down 126 per cent from the same time last year, the company said Friday.

Revenue was USD 56.16 billion, down 12 per cent from the same time last year.

Fewer people are driving or flying as the world fights to contain the spread of COVID-19, decreasing the need for fuel.

CEO Darren Woods says that demand drop is resulting in oversupplied markets and unprecedented pressure on prices and margins.

Even before the coronavirus hit, oil prices were low because of a trade war between the US and China which contributed to a global economic slowdown.

The price of a barrel of U.S. benchmark fell nearly 70 per cent since the start of the year.