What's going on?

Chevron is scrambling to keep up as the oil price goes down, down, down � but the $6.6 billion loss the oil company just delivered might�ve knocked it completely off balance.

What does this mean?

It�s not easy to look past the $10.4 billion worth of write-offs Chevron suffered after some big production plans went badly wrong. But if investors try, they�ll also see 24%-lower adjusted profits compared to the same time a year ago, as well as lower-than-expected revenue.

Chevron’s rivals shouldn�t be too pleased with themselves, either: ExxonMobil might�ve beaten revenue estimates, but profits were almost 30% lower than a year before. And things are so dire at Royal Dutch Shell � where profits fell almost 50% � that the company has reduced share buybacks, which were pushing up the value of its stock (tweet this). Investors looking for a more reliable return, then, might be more forgiving of Chevron�s current predicament: the oil giant�s going through some stuff, sure, but it did just raise its dividend on Thursday.

Why should I care?

For markets: No rest for the wicked.
The primary culprit of oil firms� woes is a low oil price: it averaged $71 per barrel in 2018, but just $64 in 2019. The oil price is heavily dependent on global economic growth, so it goes up when times are good and companies are active. But that decidedly didn�t happen last year, and continued oversupply from American shale oil firms is only making matters worse. And now the coronavirus pandemic has brought global travel to its knees, oil�s troubles might just be beginning: its price fell almost 15% in January.

The bigger picture: Stem the bleeding.
Over 40% of all oil comes from OPEC+, a group of oil-producing countries that uses its stature to influence the oil price. They�ve already reduced production to try to boost the price in the last few years, and they may now hold an emergency meeting to cut supply further.