Oil Giants Soar Amid Iran War-Driven Price Surge
US oil giants ExxonMobil and Chevron have reported record-breaking profits in the second quarter, thanks to higher crude prices and refining margins.
The conflict between the US and Iran has caused a significant disruption in global energy markets, resulting in a surge in demand for oil and subsequent price increases. ExxonMobil's profits more than doubled to $14.5 billion, while Chevron's profits reached $12.1 billion, up from just $2.3 billion in the same quarter last year.
The increased refining margins were due to a nearly 9% drop in global capacity caused by war-related dislocations, according to ExxonMobil. The company also cited 'reliable operations, optimization in advantaged assets, and high-value products across our businesses' as contributing factors.
Chevron's results also benefited from higher crude prices, which averaged $96.41 a barrel on international assets, up 64% from the previous year. However, the company experienced some negative impacts due to reduced petroleum output from the 'Partitioned Zone' between Saudi Arabia and Kuwait and lower international refining runs.