TotalEnergies Warns of Oil Oversupply Amid Price Volatility

TotalEnergies flagged a growing imbalance in global oil markets during its Q2 earnings call. Saudi Arabia and OPEC+ are flooding the market with barrels to retain share, just as demand falters in major economies. The company sees Brent crude trapped between $60-$70—a price range reflecting both geopolitical instability and Donald Trump's tariff policies.

Second-quarter net income plunged 30% to $2.7 billion, missing analyst estimates. Liquefied natural gas (LNG) earnings dropped 20%, collateral damage from depressed hydrocarbon prices. Yet the French energy giant held its dividend steady at €0.85 per share and reaffirmed a $2 billion buyback program.

The financial strain is showing. Debt ballooned to $26 billion, partly fueled by acquisitions. Capital expenditures remain on track for $17-$17.5 billion through 2025—a bet that energy markets will eventually stabilize.