ExxonMobil and Chevron, the two largest US oil and gas groups, yesterday reported big falls in third-quarter profits because of plunging crude prices, although their earnings exceeded analysts’ expectations.

Chevron was the worse affected of the two companies. Chevron said it was cutting capital spending and operating costs and would lose between 6,000 and 7,000 jobs from its 64,700-strong workforce, a cut of 11 per cent. John Watson, Chevron’s chief executive, said the company was “focused on improving results by changing outcomes within our control”.

Exxon and Chevron are under pressure from the steep decline in oil and gas prices that began in the summer of last year and accelerated after Opec, the producers’ cartel, decided against cutting output in November in the face of a supply glut. – (Financial Times)