US oil giants report profit surge again on Iran war

ExxonMobil and Chevron, two major US oil companies, reported significant profit surges in the latest quarter, driven by higher oil prices and refining margins caused by the ongoing US-Iran war. ExxonMobil's profits reached $15.4 billion, nearly double the $7.5 billion earned a year earlier, while Chevron reported $9.9 billion in profits, a substantial increase from $3.5 billion in the preceding quarter. These profits come as European companies have also seen similar earnings growth due to the prolonged conflict.

The surge in petroleum earnings is particularly notable in the refining sector, where profit margins have skyrocketed in recent months. This surge is attributed to steep price increases and supply shortages for gasoline, diesel, and other petroleum products. In the United States, this has led to public protests and discontent among consumers, especially as President Donald Trump's Republican party prepares for midterm elections where high fuel prices could negatively impact voter sentiment.

ExxonMobil noted that oil prices averaged around $85 per barrel during the period, a third more than in the previous quarter. The company's refining margins, amounting to $50.3 per barrel, were almost three times higher than the year-ago period. This boom in refining margins was largely due to increased efforts to boost production of diesel and other key products, which have faced supply constraints.

Notably, North American refineries maintained high operating rates throughout the quarter, but were unable to fully compensate for the reduced global refining capacity due to curtailments in Russia and the Middle East, with around 10 percent of global capacity offline.