ExxonMobil and Chevron are in Trump's crosshairs. On Monday the president told reporters both companies made "too much money" off supply shortages sparked by the Iran conflict and demanded they slash retail gas prices. The timing stings, coming three days after both majors posted their strongest earnings in years.
"They're making too much money based on a shortage. I don't like it," Trump said at the White House, adding that profits should flow back to consumers once the war ends. He also took a personal shot at Chevron CEO Mike Wirth for not crediting the administration's energy push during a recent TV appearance.
How Oil Got Here
The crude market went haywire after the U.S. and Israel struck Iran on February 28. Brent jumped from $72 a barrel to nearly $120 at peak, as Tehran threatened to choke exports through the Strait of Hormuz. March alone saw prices surge 51 percent, one of the sharpest monthly moves in history. The back-and-forth salvos kept volatility high all spring.
By late July, Brent had cooled to $82 after Iran signaled restraint. Monday's hopes for renewed U.S.-Iran talks pushed crude down another 5 percent. Yet second-quarter averages told the real story, with U.S. crude hovering near $92, a 27 percent jump from Q1. Gasoline tracked the move, averaging $4.09 nationwide this week versus $2.98 before hostilities, per AAA data.
The Earnings Explosion
Chevron's profit quadrupled to $12.1 billion from $2.5 billion a year prior. Exxon more than doubled to $14.5 billion from $7.1 billion. Higher crude prices fueled some of the jump, but refining margins did most of the heavy lifting. Both companies ran their refineries near maximum capacity even as the war crippled Middle East refining elsewhere, letting them pocket wider spreads on every gallon processed.
Brent crude slipped another 5% on Monday as markets digested fresh hopes for U.S.-Iran diplomacy.
This article is for informational purposes only and does not constitute financial or investment advice.
