New York (AFP) – US oil giants reported Friday another quarter of soaring profits reflecting higher oil prices and refining margins due to the US-Iran war.
ExxonMobil’s profits in the period came in at $15.4 billion, slightly more than double the $7.5 billion in the year-ago period, while Chevron’s profits were $9.9 billion, compared with $3.5 billion in the year-ago quarter. The surge in US petroleum earnings comes on the heels of similar increases at European companies as the US-Iran war drags on.
The impacts have been most dramatic in refining, where the profit margins for processing crude oil into gasoline, diesel, and other petroleum products have exploded in recent months. Steep price increases and supply shortfalls in some cases have sparked protests in parts of Asia, Latin America, and Europe.
In the United States, President Donald Trump’s Republican party faces a stern test in next week’s midterm elections, with high gasoline and diesel prices souring the mood of consumers. At ExxonMobil, oil prices averaged around $85 per barrel during the period, about a third more than in the 2025 quarter. Refining margins were $50.3 per barrel, almost three times the level in the year-ago period as the company cited efforts to boost output of diesel and other key products that have seen supplies tighten.
“Refining capacity in Russia and the Middle East remained curtailed, with roughly 10 percent of global capacity offline,” the company said in prepared remarks ahead of a conference call. “North American refineries sustained high operating rates during the quarter but were unable to fully offset reduced global refining capacity availability,” according to the remarks.
The efforts to boost output translated into 100 percent crude unit utilization at US Gulf Coast refineries, ExxonMobil said in its press release. Chevron scored higher profits in its upstream business, but also won its greatest increases in the downstream area, where profits of $4.9 billion were more than four times the level in the year-ago period.
The NGO 350.org, which advocates for clean energy and other measures to address climate change, called for “permanent levies” on “exceptional” oil industry profits, with the funds going to consumers and to finance the energy transition. “As we head into the midterms, energy affordability is on everyone’s minds,” said Candice Forten, US campaigns manager for 350.org.
“Families and small businesses want reliable electricity they can afford, and communities want a say in how their land, water, and energy resources are used,” Forten said. “Yet as people struggle with energy bills and the impacts of extreme weather, the biggest oil companies are forecast to make billions.” Forten called for policies to ensure that data centers for artificial intelligence do not drive up electricity bills and that oil companies “pay their fair share towards the costs of the crisis, rather than leaving the public to pick up the bill.”
Shares of ExxonMobil rose 2.0 percent in pre-market trading, while Chevron climbed 1.7 percent.
© 2024 AFP
