ExxonMobil (NYSE: XOM) is expecting a notable impact to its first-quarter 2026 performance following disruptions to key assets in Qatar and the United Arab Emirates.
The company said production interruptions that began in early March will reduce global oil-equivalent output by approximately 6% compared to the fourth quarter of 2025. Exxon’s upstream assets in the region account for roughly 20% of its global production, underscoring the significance of the disruption.
In Qatar, attacks affected two liquefied natural gas (LNG) trains in which Exxon holds an ownership stake. These assets represented about 3% of the company’s 2025 upstream production. Exxon noted it is still assessing the damage and has not provided a timeline for when operations will fully resume.
Downstream impacts are also expected. Exxon indicated its Middle East operations represent about 5% of its global refining and chemical capacity, with reduced crude availability likely to lower global throughput by 2% quarter-over-quarter.
Despite operational headwinds, higher oil and natural gas prices are expected to provide an earnings boost of up to $2.9 billion in Q1. However, this will be partially offset by negative timing effects related to the company’s trading activities, which could reduce earnings by $3.5 billion to $4.9 billion. Exxon emphasized that these timing impacts are accounting-related and should reverse over time.
The update highlights how geopolitical instability in the Middle East continues to influence global energy markets, affecting both supply chains and financial performance for major operators.
Author: phinds
