(1888PressRelease)
August 28, 2008 - Although Exxon Mobil and Chevron may report their lowest production since 2005, sources familiar with strategy at Asian-based wealth manager, Cornerstone Worldwide believe that investors can rely on record oil prices to drive profit gains at the largest US oil companies.
Second-quarter output fell more than 5 percent, the most in at least a decade, at Exxon Mobil, said the source Chevron Corporation estimated that it pumped 3.4 percent less oil and gas than a year earlier.
Although the companies are having their largest stock declines since 1982 and 2002, respectively, Cornerstone Worldwide are thought to remain confident that the share prices will rebound this year when oil is largely expected to escalate in price after what has been called a “technical correction” in a secular bull market in oil. Cornerstone Worldwide pointed to huge investment in new projects and rejected speculation that production increases would be a long time coming.
Chevron will need to produce at least 7.5 % more petroleum in 2008's second half to reach its full-year forecast.
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