Slugcatcher on the disconnect of rising profits and falling share prices

OIL industry profits are strong and rising thanks to a relatively high oil price and subdued costs but if that’s the case, wonders Slugcatcher, why are the share prices of world’s oil majors trending down?

Slugcatcher on the disconnect of rising profits and falling share prices Slugcatcher on the disconnect of rising profits and falling share prices Slugcatcher on the disconnect of rising profits and falling share prices Slugcatcher on the disconnect of rising profits and falling share prices Slugcatcher on the disconnect of rising profits and falling share prices

Do majors need to invest more in their futures?

This week should further demonstrate the split between oil profits and share prices when two of the really big boys report, with Exxon Mobil and Chevron scheduled to file their results at the New York Stock Exchange on Tuesday.
 
Both are expected to have performed well given that the price of oil, whether measured as Brent quality or West Texas Intermediate, was elevated for much of the quarter, weakening towards the September 30 cut-off as trade-war fears rattled buyers.
 
Just how much money is rolling into the big end of the oil sector has been the subject of several recent calculations including one from Bernstein Research earlier this month that the combined free cash flow of the top eight oil companies reached US$30.9...