Oil Majors Warn of Continued Fuel Price Pressures
The ongoing conflict in Iran has led to higher fuel prices, and major oil companies are warning that this trend will continue into the third quarter. Chevron CEO Mike Wirth stated during an earnings call that there will be 'upward pressure on product pricing' due to the ongoing tensions.
Exxon and Chevron have increased production despite the challenges posed by the Iran conflict, with Exxon reporting a record second quarter for diesel production and Chevron achieving record throughput at its U.S. refineries of over 1 million barrels per day.
However, refiners are facing difficulties due to downtime caused by maintenance, which is expected to hit downstream earnings by $175 million to $225 million for Chevron in the third quarter. Exxon's scheduled maintenance will be lower during this period compared to the previous three months.