Chevron (CVX) and Exxon Mobil (XOM) recently announced that their financial performance for the first quarter of the year faced a downward trend in revenue compared to the corresponding period last year, according to Yahoo Finance.

While it's a major decline, both oil giants exceeded Wall Street's revenue expectations for the quarter. The companies attributed this decline partially to lower margins on refined product sales, affecting their profitability in the first quarter.

To be specific, Chevron reported a revenue decrease from $49.2 billion to $46.5 billion. On the other hand, Exxon Mobil recorded a year-over-year revenue decline, with figures dropping to $78.6 billion from $76.1 billion.

Following the release of their earnings reports, Exxon Mobil (XOM) and Chevron (CVX) experienced a decline in trading on Friday. Exxon Mobil's shares fell by 2.90%, while Chevron's saw a decrease of 0.34%. 

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What Could Happen to Gas Price?

The decline in refining margins reported by Exxon Mobil and Chevron could potentially impact gas prices. 

Lower refining margins may indicate reduced profitability in refining operations, potentially leading to upward pressure on gas prices. If refining companies face challenges in maintaining profitability, they may seek to pass on these costs to consumers through higher prices at the pump.

Factors such as supply chain disruptions, changes in demand, and geopolitical tensions can also influence gas prices. Therefore, consumers may need to brace for the possibility of higher gas prices in the near term if these trends persist.

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