Oil Giants Reap Billions Amid War-Driven Price Spike
A war-induced oil price surge has lifted profits for major American and European oil companies. Exxon Mobil's second quarter profits doubled to $14.53 billion, while Chevron nearly quadrupled its profits to $12.07 billion.
The Strait of Hormuz, a narrow waterway through which a fifth of the world's oil is shipped, has been largely closed since Iran and the US began fighting in May. As a result, Brent crude prices rose from about $70 to above $100 a barrel for most of March, April, and May.
Experts point out that refineries are in the best position to profit from current market conditions due to higher product prices and global supply constraints. Rob Thummel, senior portfolio manager at Tortoise Capital, noted that 'the world is going to be short jet fuel, diesel and gasoline' as countries like Russia and China no longer export oil.
Some lawmakers are proposing taxing major oil producers for war windfalls, but Exxon CEO Darren Woods argued that penalizing the industry would be 'very short-sighted.'