(Bloomberg) -- ExxonMobil expects lower oil and gas prices to reduce the company’s earnings by about $1.5 billion as a volatile quarter for commodity prices weighs on second-quarter profits. 

Oil prices pulled down earnings by about $1 billion while gas contributed another $500 million hit when compared to the first quarter, the Spring, Texas-based company said in a statement Monday. European rival Shell Plc’s shares fell 3.3% Monday after guiding to “significantly lower” trading earnings than the previous quarter. 

The two oil giants’ outlook points to a downbeat quarter for the industry, which was already struggling to generate enough free cash to cover the dividends and share buybacks companies hiked after record earnings in 2022. U.S. President Donald Trump’s trade war and larger-than-expected supply increases from OPEC and its allies weighed on oil prices, while U.S. and Israeli attacks on Iran only provided a temporary uplift.  

Exxon expects some respite from refining margins, which will add about $300 million to earnings, the company said. The guidance only refers to market pricing and does not factor in operational performance like changes to production or costs, the company said. 

Exxon’s guidance is “bang in line” with analysts’ estimates for the second quarter, RBC Capital Markets analyst Biraj Borkhataria said in a research note. Exxon “has a much smaller trading organization than its European peer Shell, and thus was not impacted by the same issues.”