Middle East Conflict Fuels Record Oil Profits for US Majors

The ongoing conflict in the Middle East has led to a significant disruption in global energy markets, causing a supply-demand mismatch that has sent energy prices soaring. This has resulted in strong second-quarter results for major US oil companies.

Exxon Mobil's profits more than doubled year over year, reaching $14.5 billion, their highest level since 2022, driven by increased oil and gas production and nearly 20 refineries spanning from Texas to Singapore. Chevron reported the highest quarterly profit in its corporate history with a net profit of $12.1 billion.

The prolonged disruption in the Strait of Hormuz has led to a sharp reduction in global fuel supplies, pushing US crude oil prices as high as $112.95 per barrel during the quarter and driving gasoline prices to their highest levels in four years. Refining margins have hit record highs, with Exxon Mobil's refining operations generating approximately $5.5 billion in profit.