-------------------------------------------------------------------------------

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, DC 20549-1004


                                  FORM 10-Q

                              QUARTERLY REPORT

                    PURSUANT TO SECTION 13 or 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended March 31, 1998


                         Commission file number 1-7555


                               MOBIL CORPORATION

            (Exact name of registrant as specified in its charter)


             Delaware                                13-2850309
 (State or other jurisdiction of                  (I.R.S. Employer
  incorporation or organization)                 Identification No.)


   3225 Gallows Road, Fairfax, VA.                   22037-0001
(Address of principal executive offices)             (Zip Code)


                              (703) 846-3000
                        Registrant's telephone number


  Indicate  by check  mark  whether  the  registrant  (1) has filed all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X . No .

  The number of shares  outstanding  of the  registrant's  common stock,  all of
which comprise a single class with a $1.00 par value,  as of April 30, 1998, the
latest practicable date, was 781,384,529.

-------------------------------------------------------------------------------








<PAGE>









                         MOBIL CORPORATION

                             Form 10-Q
                          Quarterly Report
                           March 31, 1998

                         TABLE OF CONTENTS

  ----------------------------------------------------------------

   PART I - FINANCIAL INFORMATION                             Page

    Item 1.  Condensed Consolidated Financial Statements
               Consolidated Statement of Income for the
                 Three Months Ended March 31, 1997 and 1998 ... 1
               Consolidated Balance Sheet at December 31,
                 1997 and March 31, 1998 ...................... 2
               Consolidated Statement of Cash Flows for the
                 Three Months Ended March 31, 1997 and 1998 ... 3
               Notes to Condensed Consolidated Financial
                 Statements ................................... 4

    Item 2.  Management's Discussion and Analysis of Results
               of Operations and Financial Condition .......... 6


   PART II - OTHER INFORMATION

    Item 1.  Legal Proceedings ............................... 12
    Item 2.  Changes in Securities ........................... 13
    Item 3.  Defaults Upon Senior Securities ................. 13
    Item 4.  Submission of Matters to a Vote of Security
               Holders ....................................... 13
    Item 5.  Other Information ............................... 13
    Item 6.  Exhibits and Reports on Form 8-K ................ 14

   SIGNATURE ................................................. 15

   EXHIBIT INDEX ............................................. 16

    Exhibit 11.  Computation of Earnings per Common Share .... 17
    Exhibit 12.  Computation of Ratio of Earnings to Fixed
                   Charges ................................... 18
   ----------------------------------------------------------------







<PAGE>




                        PART I - FINANCIAL INFORMATION

Item 1.  Condensed Consolidated Financial Statements

                               MOBIL CORPORATION
                       CONSOLIDATED STATEMENT OF INCOME
                    (In millions, except per-share amounts)

                                                           For the Three Months
                                                              Ended March 31,
                                                           --------------------
[S]                                                             [C]      [C] 
                                                                 1997     1998
                                                               ------   ------
Revenues
  Sales and services (a) .................................... $15,935  $13,388
  Income from equity affiliates .............................     102      126
  Income from asset sales, interest and other ...............     149      116
                                                              -------  -------

    Total Revenues ..........................................  16,186   13,630
                                                              -------  -------
Costs and Expenses
  Crude oil, products and operating
    supplies and expenses ...................................  10,468    8,403
  Exploration expenses ......................................      75       74
  Selling and general expenses ..............................     806      934
  Depreciation, depletion and amortization ..................     643      599
  Interest and debt discount expense ........................      98       93
  Taxes other than income taxes (a) .........................   2,406    2,293
  Income taxes ..............................................     864      529
                                                              -------  -------
    Total Costs and Expenses ................................  15,360   12,925
                                                              -------  -------


Net Income .................................................. $   826  $   705
                                                              =======  =======


Net Income Per Common Share ................................. $  1.03  $   .88
                                                              =======  =======
Net Income Per Common Share -- assuming dilution ............ $  1.01  $   .86
                                                              =======  =======

Dividends Per Common Share .................................. $   .53  $   .57
                                                              =======  =======


----------------

(a) Includes excise and state gasoline
      taxes of .............................................. $ 1,422  $ 1,351









             The accompanying   notes  are  an  integral   part  of  these
                 condensed consolidated financial statements.





MOBIL                                   - 1 -

<PAGE>




                               MOBIL CORPORATION
                          CONSOLIDATED BALANCE SHEET
                                 (In millions)
[S]                                                          [C]        [C]
                                                             Dec. 31,   Mar. 31,
                                     ASSETS                     1997       1998


Current Assets
  Cash and cash equivalents ................................ $   820    $   738
  Accounts and notes receivable ............................   5,952      5,457
  Inventories ..............................................   2,156      2,236
  Prepaid expenses and other current assets ................     623        816
  Deferred income taxes ....................................     171        145
                                                             -------    -------
    Total Current Assets ...................................   9,722      9,392

Investments and Long-Term Receivables ......................   8,479      8,682

Properties, Plants and Equipment, at cost...................  49,630     49,838
Less: Accumulated Depreciation, Depletion and Amortization .  25,074     25,332
                                                             -------    -------
Net Properties, Plants and Equipment .......................  24,556     24,506

Deferred Charges and Other Assets ..........................     802        791
                                                             -------    -------
    Total Assets ........................................... $43,559    $43,371
                                                             =======    =======

                       LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
  Short-term debt .......................................... $ 2,994    $ 3,949
  Accounts payable .........................................   4,418      3,789
  Accrued liabilities ......................................   2,794      2,580
  Income, excise, state gasoline and other taxes payable ...   1,906      1,776
  Deferred income taxes ....................................     309        205
                                                             -------    -------
    Total Current Liabilities ..............................  12,421     12,299

Long-Term Debt .............................................   3,670      3,476
Reserves for Employee Benefits .............................   1,745      1,710
Accrued Restoration, Removal and Environmental Costs .......   1,072      1,071
Deferred Credits and Other Noncurrent Obligations ..........   1,274      1,296
Deferred Income Taxes ......................................   3,535      3,581
Minority Interest in Subsidiary Companies ..................     381        373
                                                             -------    -------
    Total Liabilities ......................................  24,098     23,806
                                                             -------    -------
Shareholders' Equity
  Preferred stock (ESOP-related) -- shares issued and
    outstanding: 171,093 at December 31, 1997 and
    169,436 at March 31, 1998 ..............................     665        659
  Unearned employee compensation (ESOP-related) ............    (329)      (320)
  Common stock -- $1.00 par value; shares authorized:
    1,200,000,000; shares issued: 894,308,872 at December 31,
    1997 and 895,717,969 at March 31, 1998 .................     894        896
  Capital surplus ..........................................   1,549      1,585
  Earnings retained in the business ........................  20,661     20,908
  Cumulative foreign exchange translation adjustment .......    (821)      (799)
  Common stock held in treasury, at cost -- shares:
    110,945,100 at December 31, 1997 and 113,826,100 at
    March 31, 1998 ... .....................................  (3,158)    (3,364)
                                                             -------    -------
    Total Shareholders' Equity .............................  19,461     19,565
                                                             -------    -------
Total Liabilities and Shareholders' Equity ................. $43,559    $43,371
                                                             =======    =======


          The accompanying   notes  are  an  integral   part  of  these
                 condensed consolidated financial statements.




MOBIL                                   - 2 -

<PAGE>





                               MOBIL CORPORATION
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                                 (In millions)


                                                           For the Three Months
                                                             Ended March 31,
                                                           -------------------
[S]                                                          [C]         [C]
                                                              1997        1998
                                                           -------     -------
Cash Flows from Operating Activities
  Net Income .........................................     $   826     $   705
  Adjustments to reconcile to net cash from
    operating activities:
      Depreciation, depletion and amortization .......         643         599
      Deferred income taxes ..........................         (32)        (42)
      Earnings (greater) less than dividends from
        equity affiliates ............................         (34)         13
      Exploration expenses (includes noncash
        charges:  1997-$11; 1998-$6) .................          75          74
      Gain on sales of properties, plants and
        equipment and other assets ...................         (48)        (33)
      Increase in working capital items...............        (492)       (779)
      Other, net (a)..................................         (53)         19
                                                           -------     -------
Net Cash from Operating Activities ...................         885         556
                                                           -------     -------
Cash Flows from Investing Activities
  Capital and exploration expenditures ...............        (772)       (756)
  Proceeds from sales of properties, plants and
    equipment and other assets .......................          81          98
  Payments attributable to investments and
    long-term receivables ............................        (180)       (147)
                                                           -------     -------
Net Cash Used in Investing Activities ................        (871)       (805)
                                                           -------     -------
Cash Flows from Financing Activities
  Cash dividends .....................................        (431)       (458)
  Proceeds from borrowings having original
    terms greater than three months ..................         354          52
  Repayments of borrowings having original
    terms greater than three months ..................        (612)       (441)
  Increase in other borrowings .......................         854       1,172
  Increase in minority interest (a)...................          28           3
  Proceeds from issuance of common stock .............          46          38
  Purchase of common stock for treasury ..............         (80)       (206)
                                                           -------     -------
Net Cash Provided by Financing Activities ............         159         160
                                                           -------     -------
Effect of Exchange Rate Changes on Cash and
  Cash Equivalents ...................................         (15)          7
                                                           -------     -------
Net Increase (Decrease) in Cash and Cash Equivalents .         158         (82)
Cash and Cash Equivalents - Beginning of Period ......         808         820
                                                           -------     -------
Cash and Cash Equivalents - End of Period ............     $   966     $   738
                                                           =======     =======

-------------------------------------------------------------------------------

 Memo:

 Net cash from operating activities (a)...............     $   885     $   556
 Net cash used in investing activities ...............        (871)       (805)
 Cash dividends ......................................        (431)       (458)
                                                           -------     -------
 (Shortfall) of cash from operating activities over
   investing activities and dividends ................     $  (417)    $  (707)
                                                           =======     =======
-------------------------------------------------------------------------------

(a) Prior year data restated to conform with current year presentation.

          The  accompanying   notes  are  an  integral   part  of  these
                 condensed consolidated financial statements.

MOBIL                                - 3 -

<PAGE>



                              MOBIL CORPORATION
            NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.  Basis of Financial Statements

  The condensed  consolidated  financial statements of Mobil Corporation (Mobil)
included  herein are unaudited and have been prepared  pursuant to the rules and
regulations of the Securities and Exchange  Commission  (SEC).  Although certain
information  normally  included in financial  statements  prepared in accordance
with  generally  accepted  accounting  principles has been condensed or omitted,
Mobil  believes  that the  disclosures  are  adequate  to make  the  information
presented not misleading. The condensed consolidated financial statements should
be read in conjunction with the  consolidated  financial  statements,  the notes
thereto  and the  financial  statement  schedule  included  or  incorporated  by
reference  in  Mobil's  Annual  Report on Form 10-K for its  fiscal  year  ended
December 31, 1997.

  The condensed  consolidated  financial  statements included herein reflect all
normal recurring  adjustments that, in the opinion of management,  are necessary
for a fair  presentation.  The results for interim  periods are not  necessarily
indicative of trends or of results to be expected for a full year.

2.  CHANGES IN NONOWNER EQUITY

  Beginning in the first  quarter of 1998,  compliance  with FAS 130,  Reporting
Comprehensive  Income was required.  In accordance with the requirements of this
standard,  the components of changes in nonowner equity,  net of related tax for
the three months ended March 31, 1997 and 1998 are as follows:
-------------------------------------------------------------------------------
         (In millions)                                  For the Three Months
                                                            Ended March 31,
                                                          -------------------
                                                             1997        1998
                                                          -------     -------
          Net Income .................................... $   826     $   705
          Foreign currency translation adjustments ......    (305)         22
                                                            -----       -----
          Changes in nonowner equity .................... $   521     $   727
                                                            =====       =====
   ----------------------------------------------------------------------------















MOBIL                                  - 4 -

<PAGE>





3.  Supplementary Cash Flow Data

  The table  below  details  the  components  of the line  "Increase  in working
capital  items"  which is shown in the  Consolidated  Statement of Cash Flows on
page 3. The impact of changes in  foreign  currency  translation  rates has been
removed  from  these  amounts.  Therefore,  these  amounts do not agree with the
differences  that could be derived from the  Consolidated  Balance Sheet amounts
shown on page 2.
-------------------------------------------------------------------------------
      (In millions)                                    For the Three Months
                                                         Ended March 31,

                                                       --------------------

                                                          1997      1998

                                                         -----     -----

       Changes in Working Capital Items
       (Increases)/decreases

       Accounts and notes receivable .................   $ 618     $ 421
       Inventories ...................................    (138)     (104)
       Prepaid expenses and other current assets .....    (182)     (202)
       Accounts payable ..............................    (463)     (584)
       Accrued liabilities ...........................    (114)     (200)
       Income, excise, state gasoline and
         other taxes payable .........................    (213)     (110)
                                                         -----     -----
       Increase in working capital items .............   $(492)    $(779)
                                                         =====     =====
-----------------------------------------------------------------------------


4. Effective  January 1, 1998,  Mobil adopted  Statement of Position (SOP) 98-1,
Accounting for the Costs of Computer Software Developed or Obtained for Internal
Use,  which  requires  the  capitalization  of  certain  costs  related  to  the
development or purchase of computer software. Prior to adopting this new policy,
Mobil  expensed  the cost of all computer  software.  The impact of adopting SOP
98-1 was not significant.
















MOBIL                                 - 5 -


<PAGE>




Item 2.  Management's Discussion and Analysis of Results of Operations and
Financial Condition.

RESULTS OF OPERATIONS
-------------------------------------------------------------------------------

  REPORTED EARNINGS                                      First Quarter
    (In millions)                                     _________________ Incr./
                                                         1997    1998  (Decr.)
                                                       ------  ------  ------
  Petroleum Operations
    E&P - United States ............................    $ 224    $ 80   $(144)
        - International ............................      470     310    (160)
                                                        -----   -----  -----
    Total E&P ......................................      694     390    (304)
                                                        -----   -----   -----
    M&R - United States ............................      (42)     86     128
        - International ............................      174     229      55
                                                        -----   -----   -----
    Total M&R ......................................      132     315     183
                                                        -----   -----   -----
  Total Petroleum ..................................      826     705    (121)

  Chemical .........................................       85      67     (18)
  Corporate and Financing (a).......................      (85)    (67)     18
                                                        -----   -----   -----
  Net Income .......................................    $ 826   $ 705   $(121)
                                                        =====   =====   =====
-------------------------------------------------------------------------------

  OPERATING EARNINGS                                     First Quarter
    (Adjusted for Special Items)                      _________________ Incr./
       (In millions)                                     1997    1998  (Decr.)
                                                       ------  ------  ------
  Petroleum Operations
    E&P - United States ............................    $ 224   $  80  $ (144)
        - International ............................      470     310    (160)
                                                        -----   -----   -----
    Total E&P ......................................      694     390    (304)
                                                        -----   -----   -----
    M&R - United States ............................      (42)     86     128
        - International ............................      192     239      47
                                                        -----   -----   -----
    Total M&R ......................................      150     325     175
                                                        -----   -----   -----
  Total Petroleum ..................................      844     715    (129)

  Chemical .........................................       85      67     (18)
  Corporate and Financing (a).......................      (85)    (67)     18
                                                        -----   -----   -----
  Operating Income Before Special Items.............    $ 844   $ 715   $(129)
  Special Items                                           (18)    (10)      8
                                                        -----   -----   -----
  Net Income .......................................    $ 826   $ 705   $(121)
                                                        =====   =====   =====

-------------------------------------------------------------------------------

  (a) Corporate and Financing includes corporate  administrative  expenses,  net
      financing expense and other items.


-------------------------------------------------------------------------------

  SPECIAL ITEMS                                             First Quarter
(In millions)
                                                            1997     1998


   Restructuring .......................................   $ (18)  $  (10)
                                                          ------   ------
     Total Special Items ...............................   $ (18)  $  (10)
                                                          ======   ======
-------------------------------------------------------------------------------



MOBIL                                  - 6 -

<PAGE>




-------------------------------------------------------------------------------

  REVENUES BY SEGMENT                                      First Quarter
    (In millions)                                                      Incr./
                                                                      (Decr.)
                                                          1997    1998    %


 Exploration & Producing ...........................   $ 2,131  $ 1,587  (26)
 Marketing & Refining ..............................    13,203   11,308  (14)
 Chemical ..........................................       807      699  (13)
 Other .............................................        45       36  (20)
                                                       -------  -------
   Total Revenues ..................................   $16,186  $13,630  (16)
                                                       =======  =======
-------------------------------------------------------------------------------

CONSOLIDATED RESULTS OVERVIEW

FIRST QUARTER 1998 COMPARED WITH FIRST QUARTER 1997

  Consolidated  first  quarter 1998 net income was $705  million,  a decrease of
$121 million from the $826 million  reported in the first  quarter of 1997.  Net
income per common share,  assuming dilution,  was $0.86,  compared with $1.01 in
the first  quarter of 1997.  This year's  first  quarter  net income  included a
special charge of $10 million for on-going  restructuring  costs associated with
the  European  downstream  alliance  with British  Petroleum.  Last year's first
quarter  net  income  included  a charge of $18  million,  also for BP  alliance
implementation  costs.  Excluding  special  items,  operating  earnings  of $715
million decreased $129 million, or 15%, from last year.

  Crude oil prices weakened considerably in this year's first quarter, averaging
about $7 per barrel below the same quarter last year. Additionally,  natural gas
prices in North America were down  substantially  as a result of unusually  warm
winter weather.  Despite these difficult business  conditions,  Mobil's earnings
held up fairly well due to higher margins in the  downstream  business and self-
help programs (volume growth,  performance  improvements  and expense  control),
which contributed about $100 million in the first quarter.

  In the  Upstream,  Mobil's  production  grew by 1  percent  on a barrel of oil
equivalent  basis,  primarily from higher  volumes in Equatorial  Guinea and the
Hibernia field in Canada. In addition,  production  benefited from the streaming
of the Gobe development in Papua New Guinea,  commencement of oil shipments from
Turkmenistan  and the  effects  of a  debottlenecking  at the  Tengiz  field  in
Kazakhstan.  The increase in  production  occurred  despite a pipeline  break in
Nigeria,  the lack of production from the Griffin  platform in Australia,  which
was out of service,  and lower  natural gas  production  in Europe due to warmer
weather and in the U.S. due to prior-year asset sales and operational  problems.
Additionally, production was down in Indonesia and in the United Kingdom. In the
Downstream,  trade  sales  were  strong,  both in the  United  States and in the
international area. Chemical reported higher volumes in all businesses.

  In addition to growth,  self help included  benefits in downstream from the BP
alliance in Europe,  reduced refinery downtime in the U.S.,  refinery  upgrading
projects in  Singapore,  Japan and  Australia,  and  restructuring  in Japan and
Australia.  Asia-Pacific  earnings  were  stronger  than  they have been for any
quarter since 1995, despite the economic downturn in the region.

  Worldwide  revenues of $13,630  million  were $2,556  million  lower than last
year.  This  decrease was primarily  due to the effects of  significantly  lower
worldwide   average  crude  oil,  natural  gas  and  petroleum  product  prices.
Petrochemical  prices were also lower. These decreases were partly offset by the
effects of higher  overall  volumes.  Income  from equity  affiliates  increased
primarily due to higher  earnings from the Mobil-BP  European  alliance,  partly
offset by lower income from equity  affiliates that were impacted by lower crude
oil, natural gas and petrochemical prices.






MOBIL                                  - 7 -

<PAGE>




CONSOLIDATED RESULTS OVERVIEW - continued

  Crude oil,  products and  operating  supplies and  expenses  decreased  $2,065
million to $8,403 million. The decrease was primarily due to significantly lower
worldwide  average crude oil, natural gas and petroleum  product prices,  partly
offset by higher  volume-related  expenses  and  increased  spending  for growth
programs in new venture  areas.  Selling and  general  expenses  increased  $128
million to $934 million  primarily due to timing of recording  certain expenses,
partly  offset  by  cost  saving   initiatives.   Depreciation,   depletion  and
amortization  expense was lower  mainly due to the effects of equity  accounting
for the Aera  upstream  joint venture with Shell which was  implemented  in June
1997 and the effects of equity accounting for the Chalmette  refinery  alliance,
formed late in 1997.  Taxes other than income  taxes  decreased  $113 million to
$2,293  million,  due to the impact of lower average  hydrocarbon  sales prices.
Income tax expense  decreased  $335 million  principally  due to this  quarter's
lower level of pre-tax income and mix changes in the sources of earnings.

Exploration and Producing

  Exploration  & Producing  income of $390 million was $304  million  lower than
last year's $694 million, which was a record for a quarter.

  In  the  United  States,   income  of  $80  million  decreased  $144  million.
International  income of $310  million was $160  million  lower.  These  results
reflect the significant decline in worldwide crude oil and natural gas prices.

-------------------------------------------------------------------------------
Exploration and Producing
 Selected Operating Data                               First Three Months
                                                                      Incr./
                                                                     (Decr.)
                                                       1997   1998    Vol.%

                                                      -----  -----  --------
Net Crude Oil and NGL Production (TBD)
       - U.S. ....................................      235    240     5   2
       - Intl. ...................................      653    681    28   4
                                                      -----  -----   ---
             Total ...............................      888    921    33   4
                                                      =====  =====   ===
Net Natural Gas Production (MMCFD)
       - U.S. ....................................    1,208  1,123   (85) (7)
       - Intl. ...................................    3,747  3,706   (41) (1)
                                                      -----  -----   ---
             Total ...............................    4,955  4,829  (126) (3)
                                                      =====  =====   ===
TOTAL NET PRODUCTION (TBDOE) .....................    1,786  1,796    10   1
                                                      =====  =====   ===
-------------------------------------------------------------------------------

MOBIL                                 - 8 -

<PAGE>



CONSOLIDATED RESULTS OVERVIEW - continued

Marketing and Refining

   Marketing  & Refining  income of $315  million was $183  million  higher than
1997.  Excluding  special  restructuring  charges of $18 million in 1997 and $10
million in 1998 for  implementation  costs associated with the European alliance
with BP,  operating  earnings were $325 million,  $175 million  higher than last
year.

   Operating earnings in the United States were $86 million versus a loss of $42
million in the first quarter of 1997. The improvement was due to higher industry
margins reflecting  benefits from falling crude oil prices,  lower scheduled and
unscheduled  refinery downtime,  and reduced operating  expenses.  Lube earnings
were up, primarily due to higher margins.

  International  earnings of $239 million were $47 million  higher than in 1997.
In Europe,  earnings improved due to increased benefits from the BP alliance and
higher integrated margins. Earnings were also higher in Asia-Pacific, reflecting
relatively  strong marketing  margins,  higher trade sales and improved refinery
performance.  Additionally,  benefits were realized as a result of the streaming
of the Altona  FCC,  the Japan  (Kawasaki)  resid  upgrader  and the Jurong lube
hydrocracker, as well as favorable expense performance.

-------------------------------------------------------------------------------
Marketing and Refining
 Selected Operating Data                                First Three Months
                                                                       Incr./
                                                                      (Decr.)
                                                        1997   1998  Vol.  %

                                                       -----  -----  ---  --
Petroleum Product Sales (TBD) (a)
        - U.S. ..................................      1,358  1,359    1   -
        - Intl. (b)..............................      1,940  1,958   18   1
                                                       -----  -----  ---
              Total .............................      3,298  3,317   19   1
                                                       =====  =====  ===
Refinery Runs (TBD)
        - U.S. ..................................        860    900   40   5
        - Intl. (b)..............................      1,236  1,296   60   5
                                                       -----  -----  ---
              Total .............................      2,096  2,196  100   5
                                                       =====  =====  ===

(a) Includes supply/other sales.
(b) Includes Mobil's share for the European alliance with BP.
-------------------------------------------------------------------------------

Chemical

  Chemical  earnings of $67 million  were $18 million  lower than last year as a
result of lower polyethylene and paraxylene margins.

Corporate and Financing

  Corporate and Financing expenses of $67 million were $18 million lower than in
the first  quarter of 1997  primarily  due to the timing of expenses and certain
one-time benefits in this year's first quarter.






MOBIL                                   - 9 -

<PAGE>




CONSOLIDATED RESULTS OVERVIEW - continued

DISCUSSION OF FINANCIAL CONDITION

  At March 31, 1998,  total current  assets of $9,392  million were $330 million
lower than at year-end 1997.  Cash and cash  equivalents  decreased $82 million.
Accounts  and  notes  receivable  decreased  $495  million  to  $5,457  million,
primarily  due to the  effects of lower  crude oil,  natural  gas and  petroleum
product   prices.   These  decreases  were  partly  offset  by  an  increase  in
Inventories,  up $80 million,  due to a volume increase resulting from timing of
shipments and $193 million of higher prepaid  expenses  resulting from an annual
pattern of prepayments made in the first quarter.

  Total debt of Mobil and its subsidiaries was $7,425 million at March 31, 1998,
up $761 million from year-end 1997. The debt-to-capitalization  ratio was 27% at
March 31, 1998, up from 25% at year-end 1997.

  During the first  three  months of 1998,  net cash  generated  from  operating
activities was $556 million,  $707 million less than the cash  requirements  for
investing activities and dividends.

  Accounts payable decreased $629 million primarily due to lower purchase prices
for crude oil and petroleum products.

  Income,  excise, state gasoline and other taxes payable decreased in line with
this year's lower income.

  Shareholders'  equity rose $104 million during the first three months of 1998.
Earnings  retained in the business  increased  $247  million as income  exceeded
common  and  preferred  stock  dividends.  The cost of common  stock held in the
treasury  increased  as  2,881,000  shares were  purchased on the open market to
offset the  dilutive  effects of the  issuance of shares upon  exercise of stock
options.





MOBIL                                    - 10 -

<PAGE>



DISCUSSION OF FINANCIAL CONDITION - continued

  Total investment  spending for the first quarter of 1998 was $853 million,  an
increase of $19 million from the comparable period last year.
-------------------------------------------------------------------------------

 INVESTMENT SPENDING
  (In millions)                                            First Three Months

 Capital and Exploration Expenditures                         1997     1998

                                                             ------   ------
 Petroleum Operations
  Exploration & Producing      - United States ..........   $   72   $   98
                               - International ..........      466      501
  Marketing & Refining         - United States ..........       75       60
                               - International ..........       94       43

 Chemical ...............................................       54       26
 Other ..................................................       11       28
                                                            ------   ------
 Total Capital and Exploration Expenditures .............      772      756
                                                            ------   ------
 Cash Investments in Equity Companies ...................       62       97
                                                            ------   ------

 Total Investment Spending ..............................   $  834   $  853
                                                            ======   ======




 ------------------------------
 Memo:
 Exploration expenses charged
  to income, included above
                               - United States ..........   $    5   $   17
                               - International ..........       70       57
                                                            ------   ------
                                                            $   75   $   74
                                                            ======   ======




-------------------------------------------------------------------------------

  Return on average shareholders' equity, based on net income, was 16.3% for the
twelve month period ended March 31, 1998,  compared  with 17.0% for the calendar
year 1997.  Return on average  capital  employed,  based on net income,  for the
twelve month period ended March 31, 1998 was 12.6%,  compared with 13.4% for the
calendar year 1997.

  Whenever external financing is needed, Mobil and its subsidiary companies have
ready access to multiple  capital  markets,  including  significant  bank credit
lines.

  At March 31, 1998, Mobil had effective shelf  registration  statements on file
with the SEC permitting the offer and sale of $1,815 million of debt securities.
Shelf registrations allowing the issuance of U.S. $2 billion of Euro-Medium-Term
Notes and bonds having a principal amount of 30 billion Japanese yen are also in
place.

Forward-Looking Statements

    Written  reports and oral statements made from time to time by Mobil contain
"forward-looking  statements."  Forward-looking  statements can be identified by
the fact that they do not relate  strictly to historical or current facts and by
their use of words such as "goals," "expects," "plans," "believes," "estimates,"
"forecasts,"  "projects,"  "intends"  and other words of similar  meaning.  Such
statements are likely to address Mobil's  earnings,  return on capital employed,
capital expenditures,  debt-to-capitalization ratio, dividend increases, project
implementation, production growth, reserve replacement, sales growth and expense
reductions.   They  are   based  on   management's   then-current   information,
assumptions, plans, expectations,  estimates and projections about the petroleum
and chemical industries.  However,  such statements are not guarantees of future
performance,  and actual results and outcomes may differ materially from what is
expressed  depending on a variety of factors,  many of which are outside Mobil's
control.

MOBIL                                  - 11 -

<PAGE>



Forward-Looking Statements -- continued

    Among the  factors  that could  cause  actual  outcomes or results to differ
materially  from  what is  expressed  in these  forward-looking  statements  are
changes in the demand for,  supply of, and market  prices of crude oil,  refined
products,  natural  gas and  petrochemicals;  changes in  refining  margins  and
marketing margins;  success in partnering,  in implementing oil, natural gas and
petrochemical  projects,  and in  implementing  internal  plans;  reliability of
operating  facilities;   effects  of  environmental   regulations;   success  of
commercial  negotiations;  and domestic and international political and economic
conditions.

PART II - OTHER INFORMATION
Item 1.  Legal Proceedings.

  Environmental Litigation.

  Mobil periodically  receives notices from the Environmental  Protection Agency
(EPA) or  equivalent  agencies at the state  level that Mobil is a  "potentially
responsible  party" under Superfund or equivalent state legislation with respect
to various waste  disposal  sites.  The majority of these sites are either still
under  investigation  by the  EPA or the  state  agencies  concerned,  or  under
remediation,  or  both.  In  certain  instances,  Mobil  and  other  potentially
responsible  parties have been named in court or  administrative  proceedings by
federal or state  agencies  seeking the cleanup of these  sites.  Mobil has also
been named as a defendant in various suits brought by private  parties  alleging
injury from  disposal of wastes at these  sites.  The  ultimate  impact of these
proceedings  on the  business or accounts of Mobil  cannot be  predicted at this
time due to the large number of other  potentially  responsible  parties and the
speculative  nature of cleanup cost estimates,  but based on our long experience
in managing environmental matters, we do not anticipate that the aggregate level
of  future  remediation  costs  will  increase  above  recent  levels  so  as to
materially  and  adversely  affect  our  consolidated   financial   position  or
liquidity.

  On February 5, 1998, the Pennsylvania  Department of Environmental  Protection
issued an administrative  order alleging that Mobil Oil Corporation had violated
the Pennsylvania  Tank Act by knowingly  delivering  products into  unregistered
tanks. Mobil Oil Corporation anticipates that a penalty in the range of $150,000
will be sought.  Mobil Oil Corporation has filed an appeal of the order with the
Pennsylvania Environmental Hearing Board.

    On March 27, 1998, the EPA filed an administrative  complaint with the USEPA
hearing clerk alleging that the operations of Mobil Oil Corporation's  Beaumont,
Texas refinery had violated the Clean Air Act by reason of alleged violations of
the New Source Performance Standard ("NSPS")  requirements for petroleum storage
tanks and alleged  violations of fugitive emission  requirements  under the NSPS
and the National Emissions Standards for Hazardous Air Pollutants.  A penalty of
$158,000 is sought.

    On March 2, 1998, Mobil Oil Corporation entered into a settlement  agreement
with the District Attorney of Riverside County, California to settle allegations
by the County that the fiber trench systems that underlie Mobil Oil  Corporation
service  stations in the County failed to comply with the rules therefor.  Under
the terms of the settlement  agreement,  Mobil Oil Corporation paid a penalty of
$200,000,  paid an additional $67,000 to cover costs of environmental  training,
education and investigations, and agreed to make fiber trench equipment upgrades
that are expected to cost approximately $500,000.

MOBIL                                  - 12 -

<PAGE>



Legal Proceedings -- continued

    In a  previously-reported  proceeding,  on March 30,  1998,  the EPA filed a
civil action in the U.S.  District Court for Utah,  Central  Division,  alleging
that the  McElmo  Creek  and  Ratherford  production  units in Utah,  which  are
operated  by Mobil Oil  Corporation  and in which Mobil Oil  Corporation  has an
interest,  had violated the Clean Water Act by reason of  discharges of produced
water into  navigable  waters of the United States and had also  violated  Spill
Prevention Control and Countermeasures  Regulations  promulgated under the Clean
Water Act. The maximum amount of the penalties sought in the action,  based upon
the maximum statutory penalty amounts per alleged violation,  is estimated to be
approximately $5.5 million.

  The  foregoing  proceedings  are not of  material  importance  in  relation to
Mobil's  accounts  and are  described  in  compliance  with SEC rules  requiring
disclosure of such proceedings although not material.

  Other Than Environmental Litigation.

  Mobil and its  subsidiaries  are  engaged  in various  litigations  and have a
number of unresolved  claims pending.  While the amounts claimed are substantial
and the ultimate  liability in respect of such  litigations and claims cannot be
determined  at this time,  Mobil is of the opinion that such  liability,  to the
extent not provided for through  insurance or otherwise,  is not likely to be of
material importance in relation to its accounts.

  Mobil has provided in its accounts for items and issues not yet resolved based
on management's best judgement.

Item 2.  Changes in Securities.
  None.

Item 3.  Defaults Upon Senior Securities.
  None.

Item 4.  Submission of Matters to a Vote of Security Holders.
  None

Item 5.  Other Information.
  None.



















MOBIL                                  - 13 -

<PAGE>




Item 6.  Exhibits and Reports on Form 8-K.

  Exhibits.

    The following exhibits are filed with this report:

         11.  Computation of Earnings Per Common Share
         12.  Computation of Ratio of Earnings to Fixed Charges
         27.  Financial Data Schedule

  Reports on Form 8-K.

    Mobil filed the following  Current Reports on Form 8-K during and subsequent
to the end of the first quarter:

  Date of 8-K                              Description of 8-K

January 28, 1998     Submitted a copy of the Mobil News Release dated January
                     28, 1998, reporting Mobil's estimated earnings for the
                     fourth quarter and full year 1997.

February 4, 1998     Submitted a copy of the Mobil News Release announcing that
                     the Mobil Corporation Board of Directors had elected
                     Eugene A. Renna President and Chief Operating Officer of
                     the company, effective March 1, 1998.

April 9, 1998        Submitted a copy of the Mobil Corporation By-Laws, as
                     amended to February 27, 1998, and restated Financial Data
                     Schedules for the periods ended December 31, 1995 through
                     September 30, 1997.

April 22, 1998       Submitted a copy of the Mobil News Release dated April
                     22, 1998, reporting Mobil's estimated earnings for the
                     first quarter of 1998.



MOBIL                                     - 14 -

<PAGE>




                                    SIGNATURE

  Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

REGISTRANT                                          MOBIL CORPORATION


BY
                                                    /S/ STEVEN L. DAVIS
NAME AND TITLE                                      Steven L. Davis, Controller;
                                                    Principal Accounting Officer

DATE                                                May 13, 1998




MOBIL                                - 15 -

<PAGE>




                                                    EXHIBIT INDEX

EXHIBIT                                            SUBMISSION MEDIA
-------                                            ----------------

  11.  Computation of Earnings Per                   Electronic
       Common Share

  12.  Computation of Ratio of Earnings              Electronic
       to Fixed Charges

  27.  Financial Data Schedule                       Electronic





MOBIL                                   - 16 -

<PAGE>