ExxonMobil (XOM) warned that lower oil prices and refining margins will have a negative impact on third quarter results as compared to the previous quꦿarter.

The energy giant wrote in a regulatory filing that a change in crude prices would cause a $600 million to $1 billion reduction in upstream profit. It expects a similar financial effect by a change in industry margins for energy products. The company added that gas prices could either boost upstream earnings by $200 million or cut them by $200 million.

ExxonMobil made $9.2 billion in the second quarter. It posted $9.1 billion in earnings in the third quarter of 2023.

Oil Futures Had Been Declining Until Recent Middle Eas🧸t Tensions

Oil futures began losing ground in July, and hit their lowest level since January last month. They've bounced back recently, now on a six-day winning streak, as worries about possible disruptions if the fighting in the Middle East escalates.

ExxonMobil shares, which were up 1.8% in Friday afternoon trading, have basically mirrored the oil moves, and are about 25% higher year-to-date.