Oil profits boom on ‘war bonus’ as Trump blasts energy giants for ‘making too much money’ - business live

Oil company profits are surging amid the spike in energy prices caused by the Middle East war. BP recently reported a second-quarter profit that more than doubled to $5.73 billion compared to the same period last year. Saudi Aramco, the world's largest oil exporter, saw its net profit increase by 44%, reaching $32.69 billion for the three months ending June 30th, up from $22.67 billion a year earlier.

President Donald Trump expressed his disapproval of US oil giants ExxonMobil and Chevron, stating that they had made "too much money" on the rising crude oil prices. Both companies reported significant profits in their second quarters. Chevron's earnings surged nearly 400%, reaching $12 billion compared to $2.5 billion in the same period last year, while Exxon's profits more than doubled to $14.5 billion compared to $7.1 billion the previous year.

The soaring oil prices have triggered criticism from both political sides. The AAA reports that fuel prices in the US are still cheaper than in the UK, with gasoline averaging $4.10 per gallon in the US, nearly 40% higher compared to the $2.98 per gallon before the Iran war started. Meanwhile, in Europe, farmers are warning of a slump in food production and rising prices due to extreme heat, drought, and wildfires.

Crop production in certain areas is expected to be halved, leading to a smaller harvest and one of the earliest grape harvests on record, threatening wine production in regions like Champagne, Bordeaux, and Burgundy.

Clean energy and environmental campaigners have expressed their concerns over BP's windfall profits, accusing the company of prioritizing shareholders over workers and ordinary people. Robert Palmer, deputy director of the campaign group Uplift, stated that BP's North Sea operation was put up for sale due to the lack of recoverable reserves. He emphasized that oil and gas should not be considered a path to growth and job creation, as most of the remaining reserves are exported.

In other corporate news, FTSE 100 landlord Segro agreed to a £14 billion takeover by the US property group Prologis, with each Segro share exchanging for 1,031.7p, representing a 39% premium to its share price on June 23rd and a 14.4% premium to the company's last reported valuation. The takeover is the latest in a series of London-listed companies agreeing to takeovers by overseas buyers.

Meanwhile, European stock markets opened higher following a series of corporate earnings reports, with the Stoxx Europe 600 up 0.62%, led by gains in industrial sector.