Crude oil on track for strong week amid volatility

Yahoo Finance Live discusses an increase in crude oil prices amid a week of uncertainty given a possible recession and a looming banking crisis.

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JULIE HYMAN: Let's get up to speed now on oil. Crude and Brent both ending the day up more than 2 and 1/2%. Both of them ending the week strong, but both benchmarks are down 2% to 3% over the past five days. And this coming on the heels of a big week of uncertainty over a possible recession, more fallout from the banking crisis and what effect that could have on demand.

But even as the price of oil drops, industry giants ExxonMobil and Chevron reported a collective $18 billion in first-quarter profits as they both boost production. I talked earlier today to Wells Fargo analyst Roger Read, and Read says the companies also got a boost from increasing efficiency and cost cutting, as well as Exxon beefing up its trading business.

One big question for Exxon investors now has been what it's going to deal with this huge cash pile, which ended last quarter at almost $33 billion. One source of speculation has been whether Exxon might look to acquire fracking giant Pioneer. And here's what Roger had to say about the potential for acquisitions.

ROGER READ: It's more often occurred during a time of stress, meaning low commodity prices or some other exogenous event that creates reasons for mergers. The other thing to watch, though, of course, is the quality of the asset that is being considered, right? So no question, the companies that have been mentioned out there for consolidation have those quality assets.

JULIE HYMAN: So all said and done, unclear whether, indeed, there will be big acquisitions. We'll have to wait and see.