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Investors fear Big Oil could cut share buybacks as crude prices slump

1. Falling oil prices threaten dividends and buybacks for Big Oil in 2025. 2. Analysts predict Exxon and Chevron to report rising profits despite market turmoil. 3. Trump's tariffs have lowered oil price outlooks, increasing recession fears. 4. Exxon is better positioned than Chevron to sustain dividends and buybacks. 5. EIA forecasts a significant drop in average oil prices for 2025 and 2026.

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FAQ

Why Bearish?

Lower oil prices reduce cash for dividends and repurchases, historically reflecting negatively on stock valuations.

How important is it?

The overall financial health of major oil companies affects market sentiment and S&P 500 performance, particularly as energy stocks have significant weight.

Why Long Term?

Sustained low oil prices can impact profitability and growth strategies over multiple quarters, akin to past oil price downturns.

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