Chevron Corp reported a 71 percent drop in second-quarter profit Friday as oil and gas prices fell from a year earlier and the economic slump shrank demand for fuel.

The second-largest U.S. oil company posted net profit of $1.75 billion, or 87 cents per share, down from $5.98 billion, or $2.90 a share, a year earlier.

Wall Street's average earnings forecast was 97 cents per share, according to Reuters Estimates.

On Thursday, larger rival Exxon Mobil Corp reported a steeper-than-expected drop in profit, and Royal Dutch Shell Plc's CEO said he saw no near-term respite from weak energy demand, excess capacity and high costs.

Chevron shares were down 1 percent at $67.00 in premarket trade after closing at $67.70 Thursday on the New York Stock Exchange.

(Reporting by Matt Daily in New York and Braden Reddall in San Francisco; editing by John Wallace)