S-Oil Losses and US Tariffs Weigh on Big Oil as Investors Fear Share Buyback Cuts in 2025

S-Oil has reported losses in refining and petrochemical segments, attributing the impact on second-quarter refining margins to developments in U.S. tariff negotiations. The broader oil industry is facing challenges as crude prices slump, raising investor concerns about potential reductions in share buybacks by major U.S. oil companies. This comes amid expectations that 2025 could be the worst year for Big Oil since the pandemic, with declining bumper profits prompting questions about the sustainability of higher dividends and share repurchases offered in recent years. Additionally, oil services have highlighted the initial costs associated with tariffs imposed under the Trump administration. Investors are closely watching the upcoming first-quarter earnings reports from Exxon Mobil and Chevron to gauge the risk to dividends and share repurchases for the remainder of 2025.