Something For Everyone: Shorts Have Reasons to Short; Bulls Have Reason to Be Ecstatic

If I understand this correctly, year-over-year comparisons are going to be grand slams for the majors, but quarter-to-quarter (sequentially) is going to be a bummer.

U.S. oil majors are expected to post a 56% surge in third-quarter profits compared with the same quarter a year earlier thanks to higher oil prices and improved refining margins.

But the companies' earnings may be in line with or slightly lower than they were in the second quarter, after fears of a double-dip recession sent oil prices lower than they were in the second quarter. The third quarter could mark the entrance of a period of moderation for Big Oil profits.

"Earnings will be above where they were last year, but sequentially results are going to be down," said Phil Weiss, an analyst with Argus Research.