According to the Wall Street Journal, the CEOs of Exxon and Chevron discussed a potential merger of both companies, given the fall in the price of crude oil this year. The talks also came amid governmental pressure on fossil fuels producers as an attempt to combat global warming.
Sources told the Wall Street Journal that Exxon CEO Darren Woods and Chevron CEO Mike Wirth were holding serious preliminary talks about a potential merger of ExxonMobil Corp and Chevron Corp last year. The reasons why the talks were halted remain unknown. After the failed talks, Chevron went on to buy Noble Energy, an oil producer.
The move would have important consequences on the energy market, as both companies are among the main players. If they joined, they would become the second-largest oil company in the world, only eclipsed by Saudi Aramco. It would also spark a debate about antitrust policy, though it could be argued that this merger is in the best interest of the United States, as it would be a chance to contest Saudi Arabia's control in the market.
So far, both company representatives have refused to comment on the rumors, while the consulted sources requested to remain anonymous.
Oil markets have been gaining for the last three months, though they are still facing downward pressure due to the slow COVID-19 vaccine rollout and the recent increase in infections. Around 103,528,864 cases have been reported worldwide, as well as 2,237,799 deaths since the beginning of the pandemic. The United States continues leading in the number of infections, with 26,767,229 reported cases since the beginning of the pandemic, as well as a death toll of 452,279, followed by India, Brazil, Russia and the UK.
Yesterday, oil markets were in negative territory. West Texas Intermediate Crude Oil futures fell by 0.42% during the session, closing at the 51.98 level, followed by Brent oil futures, which gained 1.74% during the session and closed at the 54.91 level.