Exxon, Chevron, Shell, BP Stocks Fall. OPEC Oil Plans, Gas Trading Fears Are Biting.

Oil prices fell immediately after OPEC announced production increases, but then retraced losses. (Dreamstime)

Big Oil stocks were retreating on Monday after Shell warned that profits from trading gas and chemicals would be lower than expected in the second quarter.

The trading slump may be confined to Shell, the biggest European energy company, but it could also be indicative of difficulties affecting others. Shell’s American depositary receipts fell 2% when the market opened. BP ADRs were down 1.5%.

Separately, a decision by the Organization of the Petroleum Exporting Countries to increase output when crude prices are already low isn’t helping. Eight OPEC members said they would lift production by 548,000 barrels a day in August, more than analysts were predicting.

Oil prices fell immediately after the OPEC announcement but then picked up on concerns that the physical market for crude remains tight at the moment. West Texas Intermediate, the U.S. benchmark, rose 0.6% to $67.40. Brent crude, the international standard, rose 1% to $69.

U.S. oil stocks were also falling, but not as much as European peers. Exxon shares fell 0.3% to $111.82, while Chevron shares were down 0.5% to $147.71. Occidental Petroleum, a U.S. producer that boasts Warren Buffett’s Berkshire Hathaway as its largest shareholder, rose 0.4%.

Write to Brian Swint at brian.swint@barrons.com