US Oil Giants Reap Billions from War-Driven Profits

US oil giants ExxonMobil and Chevron reported record-breaking profits due to the ongoing Middle East war, which has led to supply disruptions in the region. The two companies' second-quarter profits more than doubled compared to the same period last year, with ExxonMobil posting $14.5 billion in earnings and Chevron recording $12.1 billion.

ExxonMobil's CEO Darren Woods attributed the strong results to higher oil prices and increased refining margins, which reached record levels due to a nearly 9% drop in global capacity caused by war-related dislocations.

Chevron's CEO Mike Wirth echoed similar sentiments, stating that the company would continue to see upward pressure on product pricing in the third quarter and beyond. He cited the meager state of motor gasoline inventories as part of a broader dearth of refined products supplies affecting jet fuel and diesel, among other goods.

Woods also warned that it may take some time for shippers to believe transit is safe once the Strait of Hormuz reopens, further contributing to market tightness. The strong results from US oil giants come as some European countries consider imposing windfall profits taxes on the sector, with Portugal being the latest country to approve such a measure.