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                          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 June 30, 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 July 31, 1998, the 
latest practicable date, was 781,706,714.
  ------------------------------------------------------------------------------





<PAGE>




                          MOBIL CORPORATION

                              Form 10-Q
                          Quarterly Report
                            June 30, 1998

                          TABLE OF CONTENTS

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

   PART I - FINANCIAL INFORMATION                             Page

    Item 1.  Condensed Consolidated Financial Statements
               Consolidated Statement of Income for the 
                 Three and Six Months Ended
                 June 30, 1997 and 1998 .......................  1
               Consolidated Balance Sheet at December 31, 1997
                 and June 30, 1998 ............................  2
               Consolidated Statement of Cash Flows for the
                 Six Months Ended June 30, 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 ................................ 14
    Item 2.  Changes in Securities ............................ 15
    Item 3.  Defaults Upon Senior Securities .................. 15
    Item 4.  Submission of Matters to a Vote of Security
               Holders ........................................ 15
    Item 5.  Other Information ................................ 16
    Item 6.  Exhibits and Reports on Form 8-K ................. 16

   SIGNATURE .................................................. 18

   EXHIBIT INDEX .............................................. 19

    Exhibit 11.  Computation of Earnings per Common Share ..... 20
    Exhibit 12.  Computation of Ratio of Earnings to Fixed
                   Charges .................................... 22
   ----------------------------------------------------------------








<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|For the Six Months
                                             Ended June 30,  |  Ended June 30,
                                          ------------------ | -----------------
                                              1997     1998  |     1997     1998
                                          --------  -------  | --------  -------
Revenues                                                     |
  Sales and services (a) ................. $16,372  $13,023  |  $32,307  $26,411
  Income from equity affiliates ..........     167       55  |      269      181
  Income from asset sales, interest                          |
    and other ............................     210      155  |      359      271
                                           -------  -------  |  -------  -------
                                                             |
    Total Revenues .......................  16,749   13,233  |   32,935   26,863
                                           -------  -------  |  -------  -------
Costs and Expenses                                           |
  Crude oil, products and operating                          |
    supplies and expenses ................  10,531    8,074  |   20,999   16,477
  Exploration expenses ...................      82       97  |      157      171
  Selling and general expenses ...........   1,136      939  |    1,942    1,873
  Depreciation, depletion and amortization     615      621  |    1,258    1,220
  Interest and debt discount expense .....      91       30  |      189      123
  Taxes other than income taxes (a) ......   2,706    2,438  |    5,112    4,731
  Income taxes ...........................     738      392  |    1,602      921
                                           -------  -------  |  -------  -------
    Total Costs and Expenses .............  15,899   12,591  |   31,259   25,516
                                           -------  -------  |  -------  -------
Net Income ............................... $   850  $   642  |  $ 1,676  $ 1,347
                                           =======  =======  |  =======  =======
                                                             |
Net Income Per Common Share .............. $  1.06  $  0.81  |  $  2.10  $  1.69
                                           =======  =======  |  =======  =======
  Assuming Dilution ...................... $  1.04  $  0.79  |  $  2.05  $  1.65
                                           =======  =======  |  =======  =======
Dividends Per Common Share ............... $   .53  $   .57  |  $  1.06  $  1.14
                                           =======  =======  |  =======  =======
                                                             |
                                                             |
                                                             |
--------------                                               |
                                                             |
(a) Includes excise and state gasoline                       |
      taxes of ........................... $ 1,524  $ 1,543  |  $ 2,946  $ 2,894



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

MOBIL                                   - 1 -

<PAGE>





                                MOBIL CORPORATION
                            CONSOLIDATED BALANCE SHEET
                                  (In millions)

                                                             Dec. 31,   June 30,
                                     ASSETS                     1997       1998
                                                             -------    -------
Current Assets
  Cash and cash equivalents ................................ $   820    $ 1,057
  Accounts and notes receivable ............................   5,952      5,173
  Inventories ..............................................   2,156      2,265
  Prepaid expenses and other current assets ................     623        658
  Deferred income taxes ....................................     171        145
                                                             -------    -------
    Total Current Assets ...................................   9,722      9,298

Investments and Long-Term Receivables ......................   8,479      8,620

Properties, Plants and Equipment ...........................  49,630     50,507
Less: Accumulated Depreciation, Depletion and Amortization .  25,074     25,711
                                                             -------    -------
Net Properties, Plants and Equipment .......................  24,556     24,796

Deferred Charges and Other Assets ..........................     802        782
                                                             -------    -------
    Total Assets ........................................... $43,559    $43,496
                                                             =======    =======

                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
  Short-term debt .......................................... $ 2,994    $ 4,620
  Accounts payable .........................................   4,418      3,412
  Accrued liabilities ......................................   2,794      2,406
  Income, excise, state gasoline and other taxes payable ...   1,906      1,618
  Deferred income taxes ....................................     309        223
                                                             -------    -------
    Total Current Liabilities ..............................  12,421     12,279

Long-Term Debt .............................................   3,670      3,725
Reserves for Employee Benefits .............................   1,745      1,733
Accrued Restoration, Removal and Environmental Costs .......   1,072      1,079
Deferred Credits and Other Noncurrent Obligations ..........   1,274      1,240
Deferred Income Taxes ......................................   3,535      3,538
Minority Interest in Subsidiary Companies ..................     381        394
                                                             -------    -------
    Total Liabilities ......................................  24,098     23,988
                                                             -------    -------
Shareholders' Equity
  Preferred stock (ESOP-related) -- shares issued and
    outstanding: 171,093 at December 31, 1997 and
    168,206 at June 30, 1998 ...............................     665        654
  Unearned employee compensation (ESOP-related) ............    (329)      (310)
  Common stock -- $1.00 par value; shares authorized:
    1,200,000,000; shares issued: 894,308,872 at
    December 31, 1997 and 896,363,501 at June 30, 1998 .....     894        896
  Capital surplus ..........................................   1,549      1,605
  Earnings retained in the business ........................  20,661     21,092
  Cumulative foreign exchange translation adjustment .......    (821)      (994)
  Common stock held in treasury, at cost -- shares:
    110,945,100 at December 31, 1997 and 114,733,800 at
    June 30, 1998 ..........................................  (3,158)    (3,435)
                                                             -------    -------
    Total Shareholders' Equity .............................  19,461     19,508
                                                             -------    -------
Total Liabilities and Shareholders' Equity ................. $43,559    $43,496
                                                             =======    =======

              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 Six Months
                                                              Ended June 30,
                                                           -------------------

                                                              1997        1998
                                                           -------     -------
Cash Flows from Operating Activities
  Net Income .........................................     $ 1,676     $ 1,347
  Adjustments to reconcile to net cash from
    operating activities:
      Depreciation, depletion and amortization .......       1,258       1,220
      Deferred income taxes ..........................         123         (37)
      Earnings (greater) less than distributions from
        equity affiliates ............................        (126)        128
      Exploration expenses (includes noncash
        charges:  1997-$14; 1998-$11) ................         157         171
      Gain on sales of properties, plants and
        equipment and other assets ...................         (80)        (64)
      Increase in working capital items ..............        (645)     (1,068)
      Other, net (a)..................................          18         (48)
                                                           -------     -------
Net Cash from Operating Activities ...................       2,381       1,649
                                                           -------     -------
Cash Flows from Investing Activities
  Capital and exploration expenditures ...............      (1,854)     (2,008)
  Proceeds from sales of properties, plants and
    equipment and other assets .......................         220         170
  Payments attributable to investments and
    long-term receivables ............................        (330)       (247)
                                                           -------     -------
Net Cash Used in Investing Activities ................      (1,964)     (2,085)
                                                           -------     -------
Cash Flows from Financing Activities
  Cash dividends .....................................        (861)       (916)
  Proceeds from borrowings having original
    terms greater than three months ..................         491         620
  Repayments of borrowings having original
    terms greater than three months ..................      (1,301)       (588)
  Increase in other borrowings .......................       1,406       1,746
  Increase in minority interest (a)...................          53          25
  Proceeds from issuance of common stock .............          55          58
  Purchase of common stock for treasury ..............        (163)       (277)
                                                           -------     -------
Net Cash (Used in) Provided by Financing Activities ..        (320)        668
                                                           -------     -------
Effect of Exchange Rate Changes on Cash and
  Cash Equivalents ...................................         (18)          5
                                                           -------     -------
Net Increase in Cash and Cash Equivalents ............          79         237
Cash and Cash Equivalents - Beginning of Period ......         808         820
                                                           -------     -------
Cash and Cash Equivalents - End of Period ............     $   887     $ 1,057
                                                           =======     =======


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

 Memo:

 Net cash from operating activities (a)...............     $ 2,381     $ 1,649
 Net cash used in investing activities ...............      (1,964)     (2,085)
 Cash dividends ......................................        (861)       (916)
                                                           -------     -------
 Shortfall of cash from operating activities over
   investing activities and dividends ................     $  (444)    $(1,352)
                                                           =======     =======
-------------------------------------------------------------------------------
(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 and six months ended June 30, 1997 and 1998, are as follows:
--------------------------------------------------------------------------------

(In millions)                                    Three Months  |   Six Months
                                                Ended June 30, | Ended June 30,
                                                --------------   -------------
                                                 1997    1998  |   1997    1998
                                               ------  ------  | ------  ------
 Net Income .................................. $  850  $  642  | $1,676  $1,347
 Foreign currency translation adjustments ....    100    (195) |   (205)   (173)
                                                -----   -----  |  -----   -----
 Changes in nonowner equity .................. $  950  $  447  | $1,471  $1,174
                                                =====   =====  |  =====   =====
   ----------------------------------------------------------------------------


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 Six Months
                                                          Ended June 30,
                                                      --------------------
                                                          1997      1998
      Changes in Working Capital Items
      (Increases)/decreases

       Accounts and notes receivable .................   $ 918   $   672
       Inventories ...................................    (168)     (180)
       Prepaid expenses and other current assets .....    (169)      (57)
       Accounts payable ..............................    (839)     (905)
       Accrued liabilities ...........................    (121)     (346)
       Income, excise, state gasoline and
         other taxes payable .........................    (266)     (252)
                                                         -----   --------
       Increase in working capital items .............   $(645)  $(1,068)
                                                         =====   =======
     ----------------------------------------------------------------------

4.  New Accounting Standard

  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.  Amounts  expensed in prior
years are not required to be capitalized.

5.  Subsequent Event

  On July 15,  1998,  the  two-month  extension  granted  by  Perupetro  for the
continued appraisal of the Camisea gas fields expired  without  agreement being
reached on issues related to the introduction of gas into the Peruvian market.
Mobil and its partner are evaluating options to approach the Peruvian 
government and continue discussions.  Mobil has invested $101 million in the 
appraisal phase.  In the event the project does not proceed, it is expected 
that additional exit costs of $30-$50 million will be incurred.





MOBIL                                   - 5 -

<PAGE>





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

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

   REPORTED EARNINGS              Second Quarter       |First Six Months
     (In millions)                ______________ Incr./|_________________ Incr./
                                                (Decr.)|                 (Decr.)
                                   1997   1998         |   1997    1998
                                   ----   ----  -----      ----    ----
  Petroleum Operations                                 |
    E&P - United States ..........$ 127  $  44  $ (83) | $  351  $  124  $ (227)
        - International ..........  331    191   (140) |    801     501    (300)
                                  -----  -----  -----  | ------  ------  ------
    Total E&P ....................  458    235   (223) |  1,152     625    (527)
                                  -----  -----  -----  | ------  ------  ------
    M&R - United States ..........  194    194      -  |    152     280     128
        - International ..........  206    210      4  |    380     439      59
                                  -----  -----  -----  | ------  ------  ------
    Total M&R ....................  400    404      4  |    532     719     187
                                  -----  -----  -----  | ------  ------  ------
  Total Petroleum ................  858    639   (219) |  1,684   1,344    (340)
                                                       |
  Chemical .......................   91     58    (33) |    176     125     (51)
  Corporate and Financing (a).....  (99)   (55)    44  |   (184)   (122)     62
                                  -----  -----  -----  | ------  ------  ------
  Net Income .....................$ 850  $ 642  $(208) | $1,676  $1,347  $ (329)
                                  =====  =====  =====  | ======  ======  ======
 -------------------------------------------------------------------------------

   OPERATING EARNINGS             Second Quarter       |First Six Months
     (Adjusted for Special Items) ______________ Incr./|_________________ Incr./
        (In millions)                           (Decr.)|                 (Decr.)
                                   1997   1998         |   1997    1998
                                   ----   ----  -----      ----    ----
  Petroleum Operations                                 |
    E&P - United States ..........$ 127  $  44  $ (83) | $  351  $  124  $ (227)
        - International ..........  331    191   (140) |    801     501    (300)
                                  -----  -----  -----  | ------  ------  ------
    Total E&P ....................  458    235   (223) |  1,152     625    (527)
                                  -----  -----  -----  | ------  ------  ------
    M&R - United States ..........  194    194      -  |    152     280     128
        - International ..........  226    223     (3) |    418     462      44
                                  -----  -----  -----  | ------  ------  ------
    Total M&R ....................  420    417     (3) |    570     742     172
                                  -----  -----  -----  | ------  ------  ------
  Total Petroleum ................  878    652   (226) |  1,722   1,367    (355)
                                                       |
  Chemical .......................   91     58    (33) |    176     125     (51)
  Corporate and Financing (a).....  (99)   (55)    44  |   (184)   (122)     62
                                  -----  -----  -----  | ------  ------  ------
  Income Excluding Special Items..  870    655   (215) |  1,714   1,370    (344)
  Special Items (table on page 7)   (20)   (13)     7  |    (38)    (23)     15
                                  -----  -----  -----  | ------  ------  ------
  Net Income .....................$ 850  $ 642  $(208) | $1,676  $1,347  $ (329)
                                  =====  =====  =====  | ======  ======  ======
 -------------------------------------------------------------------------------

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


MOBIL                                   - 6 -

<PAGE>




______________________________________________________________________________ 
SPECIAL ITEMS                            Second Quarter  |   First Six Months
    (In millions)                                        |
                                          1997    1998   |    1997     1998
                                          ----    ----        ----     ----
                                                         |                    
    Restructuring .....................  $ (20)  $ (13)  |   $ (38)   $ (23)
                                         -----   -----   |   -----    -----
    Total Special Items ...............  $ (20)  $ (13)  |   $ (38)   $ (23)
                                         =====   =====       =====    =====


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

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

  REVENUES BY SEGMENT             Second Quarter      |    First Six Months
    (In millions)                               Incr./|                   Incr./
                                               (Decr.)|                  (Decr.)
                                  1997     1998    %  |    1997     1998     %
                                  ----     ---- -----      ----     ----  ----
                                                      |
 Exploration & Producing ...   $ 1,695  $ 1,456  (14) | $ 3,826  $ 3,043  (20)
 Marketing & Refining ......    14,191   11,089  (22) |  27,394   22,397  (18)
 Chemical ..................       790      657  (17) |   1,597    1,356  (15)
 Other .....................        73       31  (58) |     118       67  (43)
                               -------  -------       | -------  -------
   Total Revenues ..........   $16,749  $13,233  (21) | $32,935  $26,863  (18)
                               =======  =======       | =======  =======

--------------------------------------------------------------------------------
CONSOLIDATED RESULTS OVERVIEW

SECOND QUARTER 1998 COMPARED WITH SECOND QUARTER 1997

  Consolidated  second  quarter net income was $642 million,  a decrease of $208
million from the $850 million reported for the second quarter of 1997.  Earnings
per common share, assuming dilution,  for the second quarter of 1998 were $0.79,
compared with $1.04 for the second quarter of 1997. Special charges this year of
$13 million were for implementation  expenses  associated with the Mobil-British
Petroleum  (BP)  downstream  alliance  in  Europe.  The  second  quarter of 1997
included  special  charges of $20 million,  also for BP alliance  implementation
costs. Excluding special items from both periods,  second quarter 1998 operating
earnings of $655 million decreased $215 million, or 25%.

  Earnings  in the second  quarter  were hurt by  significantly  lower crude oil
prices,  down about $5 per barrel from the same period last year,  as well as by
weak industry fundamentals in many of Mobil's businesses.  International natural
gas prices trended lower, particularly for LNG; Asia-Pacific downstream margins,
both refining and marketing,  weakened  considerably;  and petrochemical margins
remained under downward pressure.  Considering these fundamentals, the company's
earnings held up fairly well due to about $90 million of benefits from self-help
initiatives.  During the first six months, self-help has contributed almost $200
million to Mobil's 1998 earnings.

  In the Downstream, self-help included continued growth in trade sales volumes,
strong refinery performance and contributions from on-going initiatives.  In the
U.S.,  strong  refinery  performance  and the  effects of  successful  marketing
programs to increase gasoline sales contributed to record second quarter and six
months earnings. Benefits from the BP downstream alliance in Europe continued to
grow, and in Asia-Pacific, earnings were up despite significantly lower margins,
benefiting from numerous initiatives implemented over the last year and improved
refinery performance. Lube earnings were higher, benefiting from initiatives and
increased margins due to lower feedstock costs.


MOBIL                                   - 7 -

<PAGE>

CONSOLIDATED RESULTS OVERVIEW - continued

  In the  Upstream,  lower  worldwide  crude oil and  international  natural gas
prices reduced earnings by over $200 million. Additionally, Mobil's year-to-date
production  was nearly 2% lower than during the same  period last year,  largely
due to temporary constraining factors. These factors include economic conditions
in Asia, which have resulted in the deferral of LNG cargoes from Indonesia,  and
cutbacks in OPEC quotas,  which primarily  impact Mobil's  Nigerian  operations.
Longer term, the company's goal to grow  production by an average of 4% per year
remains unchanged.

  Worldwide revenues in the second quarter of 1998 of $13,233 million were
$3,516 million lower than revenues in the second quarter of 1997, reflecting the
effects of  significantly  lower worldwide  average crude oil and  international
average natural gas prices,  and lower petroleum  product prices.  Petrochemical
prices were also lower.  These  decreases were somewhat offset by the effects of
higher  overall  worldwide  sales  volumes and higher  average U.S.  natural gas
prices.

  Crude oil,  products and operating  supplies and expenses  decreased by $2,457
million to $8,074 million,  primarily due to significantly lower worldwide crude
oil and  petroleum  product  prices,  slightly  offset by higher  volume-related
expenses.  Exploration  expenses were higher in the U.S., mainly due to a higher
level of deep-water  Gulf of Mexico  activity and a larger overall  program this
year. Selling and general expenses  decreased $197 million to $939 million,  due
to timing  of  incurring  certain  expenses  and  benefits  from cost  reduction
initiatives.  Depreciation,  depletion and amortization  expenses were about the
same in both  periods as decreases  related to the effects of equity  accounting
for the  Aera  upstream  alliance  with  Shell in June  1997  and the  Chalmette
refinery  alliance,  formed  late in 1997,  were  offset by the  effects  of new
capital  projects.  Interest and debt  discount  expense  decreased  $61 million
reflecting  lower debt levels this year and certain  favorable  one-time  items.
Taxes other than income taxes decreased $268 million to $2,438  million,  mainly
due to the effects of lower  hydrocarbon  and product sales  prices.  Income tax
expense decreased $346 million to $392 million,  due to a lower level of pre-tax
income and a shift in earnings from upstream to downstream  operations that have
a lower  effective  tax  rate.  Additionally,  as crude  prices  decline,  taxes
associated  with our  fixed  margin  production  decline  both in total and as a
percent of pre-tax income.

FIRST SIX MONTHS 1998 COMPARED WITH FIRST SIX MONTHS 1997

  Mobil's  first half 1998 net income was $1,347  million,  compared with $1,676
million  for the same  period of 1997.  This  year's  results  included  special
charges of $23 million for expenses  related to  implementation  of the Mobil-BP
European  alliance.  First half 1997 net income included  special charges of $38
million, also for BP alliance implementation costs.

  Excluding special items,  first half operating earnings of $1,370 million were
down $344 million,  or 20%, from the comparable  period of 1997. The decline was
primarily  due to the  significant  drop in worldwide  crude oil and natural gas
prices and lower downstream margins in Asia-Pacific,  partly offset by self-help
initiatives and stronger  downstream  margins in the U.S. and Europe.  Self-help
included  the  overall   favorable  effects  of  volumes,   excellent   refinery
performance  and  benefits  from  the  Mobil-BP  European  downstream  alliance.
Additionally,  Asia-Pacific  downstream  benefited  from on-going  restructuring
initiatives throughout the region.

MOBIL                                   - 8 -

<PAGE>


CONSOLIDATED RESULTS OVERVIEW - continued

  Six month 1998 revenues of $26,863 million were $6,072 million lower than
revenues  in the same  period  of 1997  primarily  due to the  effects  of lower
average   worldwide  crude  oil,  natural  gas  and  petroleum  product  prices.
Petrochemical  prices were also lower.  These  decreases  were partly  offset by
effects of higher overall sales volumes.

  Crude oil, products and operating supplies and expenses decreased in the first
half of 1998 by $4,522 million to $16,477 million  compared with the same period
last year,  primarily  due to lower  worldwide  average  crude oil and petroleum
product prices, slightly offset by higher volume-related  expenses.  Selling and
general  expenses  decreased  $69 million to $1,873  million,  primarily  due to
expense  reductions  associated with cost saving  initiatives,  partly offset by
growth-related  expenses  in new  venture  areas.  Depreciation,  depletion  and
amortization expenses were slightly lower as decreases related to the effects of
equity accounting for the Aera upstream alliance with Shell in June 1997 and the
Chalmette  refinery  alliance,  formed late in 1997,  were largely offset by new
capital  projects.  Interest and debt  discount  expense  decreased  $66 million
reflecting  lower debt levels this year and certain  one-time  favorable  items.
Taxes other than income taxes decreased $381 million to $4,731  million,  due to
the impact of lower average  hydrocarbon  and product  sales prices.  Income tax
expense  decreased $681 million from 1997 due to a lower level of pre-tax income
and a shift in earnings from upstream to downstream operations that have a lower
effective tax rate. Additionally, as crude prices decline, taxes associated with
our fixed  margin  production  decline both in total and as a percent of pre-tax
income.





MOBIL                                   - 9 -

<PAGE>



Exploration and Producing
--------------------------------------------------------------------------------
Exploration and Producing
  Selected Operating Data             Second Quarter          First Six Months
                                            Incr./(Decr.)          Incr./(Decr.)
                                            -------------          -------------
                                 1997   1998   Vol.  %   1997   1998    Vol.  %
                                 ----   ----  ---- ----  ----   ----  ----- ---
Net Crude Oil and NGL                                  |
  Production (TBD)   - U.S. ..    248    242    (6) (2)|  241    241      -   -
                     - Intl. .    674    677     3   - |  664    679     15   2
                                -----  ----- -----     |-----  -----  -----
    Total ....................    922    919    (3)  - |  905    920     15   2
                                =====  ===== =====     |=====  =====  =====
Net Natural Gas                                        |
  Production (MMCFD) - U.S. ..  1,136  1,119   (17) (1)|1,172  1,121    (51) (4)
                     - Intl.(a) 3,259  3,074  (185) (6)|3,502  3,323   (179) (5)
                                -----  ----- -----     |-----  -----  -----
    Total ....................  4,395  4,193  (202) (5)|4,674  4,444   (230) (5)
                                =====  ===== =====     |=====  =====  =====
TOTAL NET PRODUCTION (TBDOE)..  1,718  1,679   (39) (2)|1,752  1,725    (27) (2)
                                =====  ===== =====     |=====  =====  =====
-------------------------------------------------------------------------------
(a) Year-to-date production reflects a downward restatement of Indonesia first
    quarter 1998.

SECOND QUARTER 1998 COMPARED WITH SECOND QUARTER 1997

  Exploration  and Producing  income of $235 million was $223 million lower than
in the second quarter of last year.

  In  the  United  States,   income  was  $44  million,  down  $83  million,  as
significantly  lower crude oil prices and higher exploration  expenses were only
partly offset by higher natural gas prices.

  International  income  of $191  million  was  $140  million  lower,  primarily
reflecting a large  decline in crude oil and natural gas prices.  The effects of
higher liquids volumes in Canada, Equatorial Guinea and Australia were offset by
the  effects of OPEC  constraints,  mainly in Nigeria,  and the  deferral of LNG
cargoes from Indonesia.

FIRST SIX MONTHS 1998 COMPARED WITH FIRST SIX MONTHS 1997

  Exploration  and Producing  income of $625 million was $527 million lower than
last  year.  The  decrease  was mainly due to lower  crude oil and  natural  gas
prices.  The effects of higher liquids volumes in Canada,  Equatorial Guinea and
Australia were more than offset by the effects of OPEC constraints, the deferral
of LNG cargoes from Indonesia and milder weather in Europe.  Additionally,  U.S.
natural gas production was lower,  reflecting some operational  problems earlier
in the year, prior period asset sales and field declines.
Growth-related expenses were somewhat higher in new venture areas.

MOBIL                                   - 10 -


<PAGE>



Marketing and Refining

  Marketing and Refining            Second Quarter           First Six Months
   Selected Operating Data                  Incr./(Decr.)          Incr./(Decr.)
                                  1997    1998  Vol.  %    1997   1998  Vol.  %
                                 -----   -----  ---  --   -----  -----  ---  --
  Petroleum Product
    Sales (TBD)(a)   - U.S. ...  1,449   1,452    3   - | 1,404  1,406    2   -
                     - Intl.(b)  1,831   1,915   84   5 | 1,887  1,941   54   3
                                 -----   -----  ---     | -----  -----  ---
       Total ..................  3,280   3,367   87   3 | 3,291  3,347   56   2
                                 =====   =====  ===     | =====  =====  ===
                                                        |
  Refinery Runs (TBD)                                   |
                     - U.S. ...    978     941  (37) (4)|   919    921    2   -
                     - Intl.(b)  1,139   1,224   85   7 | 1,185  1,259   74   6
                                 -----   -----  ---     | -----  -----  ---
       Total ..................  2,117   2,165   48   2 | 2,104  2,180   76   4
                                 =====   =====  ===     | =====  =====  ===

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

SECOND QUARTER 1998 COMPARED WITH SECOND QUARTER 1997

  Marketing  and Refining  net income was $404 million in the second  quarter of
1998 versus last year's income of $400 million.  This quarter's results included
special  charges  of $13  million  for  implementation  costs  for the  Mobil-BP
European  alliance while last year's income included $20 million for BP alliance
implementation  costs.  Excluding  special charges from both periods,  operating
earnings of $417 million were $3 million lower than last year.

  Operating  earnings in the United  States  were $194  million,  matching  last
year's record second quarter results.  This quarter's strong results were driven
by excellent operating performance, strong integrated margins and the effects of
various successful marketing programs.  Gasoline trade sales were 6% higher than
last year and lube income was up due to improved margins and the effects of this
quarter's product mix.

  International  earnings of $223 million were $3 million lower than in 1997. In
Europe,  earnings were higher due to stronger  integrated margins and additional
benefits   from  the  Mobil-BP   alliance.   Earnings   were  also  stronger  in
Asia-Pacific,  despite  the  significant  deterioration  in  both  refining  and
marketing  margins.  Earnings  benefited  from  performance  initiatives  in the
region,  improved  refinery  performance  and higher trade sales volumes.  Other
international  earnings were negatively impacted by the scheduled  turnaround at
Mobil's Yanbu, Saudi Arabia joint venture refinery and lower margins for product
exports from this facility.

FIRST SIX MONTHS 1998 COMPARED WITH FIRST SIX MONTHS 1997

  Marketing and Refining net income was $719 million for the first six months of
1998 compared  with net income of $532 million last year.  Excluding $23 million
of special  charges this year for  implementation  costs related to the Mobil-BP
alliance and $38 million of these charges last year,  operating earnings of $742
million were $172 million higher than last year. Earnings were higher due to the
effects of various  restructuring  initiatives,  mostly in Asia-Pacific,  higher
product sales  volumes,  excellent  refinery  performance  and benefits from the
Mobil-BP  European  alliance.  Higher margins in the U.S. and Europe were partly
offset by lower margins in Asia-Pacific. 


MOBIL                                   - 11 -

<PAGE>


Chemical

SECOND QUARTER AND FIRST SIX MONTH COMPARISONS OF 1998 WITH 1997

  Chemical  income of $58 million was $33 million  lower than last year's second
quarter.  In the first six  months of 1998,  Chemical  income  was $125  million
compared  with $176  million in the same period last year.  The decrease in both
periods reflects lower polyethylene and paraxylene margins, partly offset by the
effect of higher volumes, lower expenses and improved plant reliability.

Corporate and Financing

SECOND QUARTER AND FIRST SIX MONTH COMPARISONS OF 1998 WITH 1997

  Corporate and Financing  expense was $55 million in the second quarter of 1998
compared with $99 million in the same period last year. For the first six months
of 1998,  Corporate  and Financing  expense was $122 million,  $62 million lower
than last  year.  Decreases  in both  periods  reflect  lower  average  net debt
balances and certain one-time favorable items.

ACCOUNTING STANDARDS

  In  June  1998,  Financial  Accounting  Standard  (FAS)  133,  Accounting  for
Derivative  Instruments  and Hedging  Activities,  was issued.  Adoption of this
standard is required in the first  quarter of 2000.  FAS 133  requires  that all
derivatives be recognized as either assets or  liabilities  and measured at fair
value.  If  certain  conditions  are  met,  a  derivative  may  be  specifically
designated  as a hedge  of risk  exposure.  Mobil  is  currently  reviewing  the
expected  impact of FAS 133,  which will depend on the  derivatives  outstanding
when it is adopted and is not expected to be significant.

DISCUSSION OF FINANCIAL CONDITION

  Total current  assets as of June 30, 1998 were $9,298  million,  a decrease of
$424 million from  December 31, 1997.  Accounts and notes  receivable  decreased
$779 million to $5,173  million,  primarily  due to the effects of lower average
crude oil,  natural gas,  petroleum  products  and  petrochemical  prices.  This
decrease  was  partly  offset  by a higher  level of Cash and cash  equivalents.
Additionally,  Inventories were up mainly due to timing of in-transit  shipments
and a seasonal build of gas liquids, partly offset by currency effects.

  Total debt of Mobil and its  subsidiaries  was $8,345 million,  $1,681 million
higher than  year-end  1997,  reflecting  reduced  earnings  and higher  working
capital requirements. The debt-to-capitalization ratio was 30% at June 30, 1998,
up from 25% at year-end 1997.

  During  the  first six  months  of 1998,  net cash  generated  from  operating
activities was $1,649  million,  $1,352 million less than the cash  requirements
for investing activities and dividends. Refer to the table at the bottom of page
3.

  Accounts  payable  decreased  $1,006  million  primarily due to lower purchase
prices for crude oil and petroleum products.

  Income, excise, state gasoline and other taxes payable decreased $288 million
mainly due to the effects of lower average sales prices for hydrocarbons and 
petroleum products.

MOBIL                                   - 12 -

<PAGE>


DISCUSSION OF FINANCIAL CONDITION - continued

  Shareholders'  equity  rose $47  million  during  the first six months of 1998
primarily  due to an  increase  of $431  million  in  earnings  retained  in the
business and an increase in capital surplus of $56 million.  Largely  offsetting
the increase in retained  earnings were a net charge in the  cumulative  foreign
exchange  translation  adjustment account reflecting a strengthening U.S. dollar
in certain  countries  in which the company  has  significant  operations  ($173
million)  and an  increase in the cost of common  stock held in the  treasury as
3,788,700  shares  were  purchased  on the open  market to offset  the  dilutive
effects of stock options ($277 million).

  Total  investment  spending for the second quarter of 1998 was $1,507 million,
an increase of $49 million from the comparable  period  last  year.  For the
first six  months  of 1998,  worldwide investment  spending was $2,360  million,
compared with $2,292  million for the year-earlier period.
--------------------------------------------------------------------------------

INVESTMENT SPENDING
 (In millions)                           Second Quarter       First Six Months

 Capital and Exploration Expenditures      1997    1998          1997     1998
                                          -----   -----         -----    -----
 Petroleum Operations                                       |
   Exploration & Producing  - U.S. ....  $  136  $  174     |  $  208   $  272
                            - Intl. ...     629     765     |   1,095    1,266
   Marketing & Refining     - U.S. ....      77     103     |     152      163
                            - Intl. ...     150      70     |     244      113
 Chemical .............................      70      70     |     124       96
 Other ................................      20      70     |      31       98
                                         ------  ------     |  ------   ------
     Total Capital and Exploration                          |
       Expenditures ...................  $1,082  $1,252     |  $1,854   $2,008
                                         ------  ------     |  ------   ------
 Cash Investments in Equity Companies .     376     255     |     438      352
                                         ------  ------     |  ------   ------  
 Total Investment Spending               $1,458  $1,507     |  $2,292   $2,360
                                         ======  ======     |  ======   ======
 ----------------------------                               |
 Memo:                                                      |
 Exploration Expenses charged                               |
   to income, included above                                |
                            - U.S. ....  $   11  $   32     |  $   16   $   49
                            - Intl. ...      71      65     |     141      122
                                         ------  ------     |  ------   ------
     Total Exploration Expenses .......  $   82  $   97     |  $  157   $  171
                                         ======  ======     |  ======   ======

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

  Return on average capital employed for the twelve-month  period ended June 30,
1998 was 11.4%,  compared  with  13.4% for the  calendar  year  1997.  Return on
average  shareholders'  equity was 15.1% for the twelve-month  period ended June
30, 1998, compared with 17.0% 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 June 30, 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.   $1,850   million  of
Euro-Medium-Term  Notes  and  bonds  having a  principal  amount  of 30  billion
Japanese yen were also in place.

MOBIL                                   - 13 -


<PAGE>


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.

    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 May 15, 1998, a previously-reported  proceeding,  brought by the New Jersey
Department of Environmental  Protection (the "New Jersey DEP"), was settled. The
New  Jersey  DEP had  alleged,  in an  Administrative  Order and Notice of Civil
Penalty  Assessment  received by Mobil Oil  Corporation on May 2, 1996, that the
operations  of Mobil  Oil  Corporation's  Paulsboro,  New  Jersey  refinery  had
violated  various  Clean Air Act  requirements.  The New Jersey DEP had sought a
penalty of $153,000; the proceeding was settled by a payment of $90,000.

MOBIL                                   - 14 -

<PAGE>



Legal Proceedings - concluded

  The foregoing  proceeding is not of material importance in relation to Mobil's
accounts and is 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.

  At the Annual  Meeting of the  Shareholders  of Mobil  Corporation  on May 14,
1998, the following matters were voted on:

  Shareholders  elected five  directors  for  three-year  terms  expiring at the
Annual  Meeting in 2001 and one director  for the balance of a  three-year  term
expiring  at the Annual  Meeting in 2000.  The vote  tabulation  for  individual
directors was:

      Directors                   Shares For                 Shares Withheld
      ---------                   ----------                 ---------------
Lewis M. Branscomb                656,044,763                   9,515,505
Allen F. Jacobson                 655,828,320                   9,731,948
J. Richard Munro                  656,601,823                   8,958,445
Lucio A. Noto                     656,730,604                   8,829,664
Robert O. Swanson                 656,929,651                   8,630,617
Eugene A. Renna                   656,964,605                   8,595,663

  Shareholders approved and ratified the appointment of Ernst & Young LLP as the
company's  independent auditors by a vote of 660,164,055 for, 2,763,942 against,
and 2,632,271 abstentions.

  A shareholder proposal to limit the authority of Mobil's Board of Directors to
issue preferred stock was defeated with 329,794,421  votes against,  239,353,830
in favor and 13,738,386 votes abstained.

  A  shareholder  proposal  calling  for  cumulative  voting in the  election of
Mobil's Directors was defeated with 428,683,295 votes against, 135,909,213 votes
in favor and 18,789,336 votes abstained.


MOBIL                                   - 15 -


<PAGE>


Item 4.  Submission of Matters to a Vote of Security Holders. -- concluded

 A shareholder proposal calling for the Board of Directors to review and develop
investment  guidelines for country selection was defeated with 515,475,714 votes
against, 37,406,109 votes in favor and 30,464,298 votes abstained.

  The text of the above  proposals is  incorporated  by reference to Items 3, 4,
and 5 of Mobil's definitive Proxy Statement dated March 23, 1998, filed with the
SEC pursuant to Regulation 14A on March 23, 1998.

Item 5.  Other Information.

1999 Annual Meeting of Stockholders  --
Deadlines for Stockholders' Proposals and for Stockholders' Nominations of 
Directors


  The 1999 Annual Meeting of Stockholders will be held on May 13, 1999.

  Stockholders'  proposals are eligible for  consideration  for inclusion in the
proxy  statement for the 1999 Annual Meeting  pursuant to SEC Rule 14a-8 if such
proposals  are  received by Mobil  before the close of business on November  23,
1998.

  Notices of stockholders' proposals submitted outside the processes of SEC Rule
14a-8 will be considered  untimely,  pursuant to the advance notice  requirement
set forth in Article II, Section 1 of Mobil's  By-Laws,  unless such notices are
delivered  to or mailed and  received by Mobil  during the period  beginning  on
February 12, 1999 and ending at the close of business on March 12, 1999.

  Notices of stockholders'  intent to nominate persons for election as directors
at the 1999 Annual Meeting will be considered untimely,  pursuant to the advance
notice  requirement  set forth in Article  III,  Section 1 of  Mobil's  By-Laws,
unless such notices  have been  delivered to or mailed and received by Mobil not
later than the close of business on February 12, 1999.

  The  proposals  and notices  referred to above  should be sent or given to the
Corporate Secretary,  Mobil Corporation,  3225, Gallows Road, Fairfax,  Virginia
22037-0001.  Copies of Mobil's By-Laws, which set forth additional  requirements
for notices of stockholders'  proposals  submitted  outside the processes of SEC
Rule  14a-8  and for  stockholders'  nominations  of  persons  for  election  as
directors  at the 1999  Annual  Meeting,  may be  obtained  from  the  Corporate
Secretary.

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 (electronic only)




MOBIL                                   - 16 -


<PAGE>







Reports on Form 8-K.

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

 Date of 8-K                    Description of 8-K

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  issued April
                   22, 1998, reporting Mobil's estimated earnings for the first 
                   quarter of 1998.

July 22, 1998      Submitted a copy of the Mobil News Release issued July 22,
                   1998, reporting Mobil's estimated earnings for the second 
                   quarter of 1998.



MOBIL                                   - 17 -


<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                                           August 13, 1998


MOBIL                                   - 18 -
<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                                   - 19 -

<PAGE>