Wall Street analysts say Chevron merger talks a sideshow before Exxon loss

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Wall Street analysts on Monday gave little credence to the possibility of an Exxon-Chevron mega merger, as news of talks last year between the two ...

Wall Street analysts on Monday gave little credence to the possibility of an Exxon-Chevron mega merger, as news of talks last year between the two largest U.S. oil companies leaked ahead of Exxon's results that are expected to show the company posting its first-ever annual loss.

Shares in both the companies were down in early trading in New York, despite a rising overall market and weekend gains in global crude prices."At the depths of the market last year... a cost cutting focused merger of the two companies may have made sense and also scale matters in this industry so it would have created by far the largest integrated oil company," said Anish Kapadia, director of energy at London-based Palissy Advisors.

As oil producers in Europe adapt to investors' push for a shift into renewables, it is also possible that Chevron or Exxon could buy the oil producing business of a European major in the coming years, Kapadia said.

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