Big Oil Posts Strongest Quarter in Years Amid Iran War-Driven Disruptions

Big Oil companies have reported their strongest quarter since Russia's invasion of Ukraine in 2022, with six major players posting a combined $79.4 billion in second-quarter net income.

The surge is attributed to Brent crude averaging about $104 a barrel, up more than 50 per cent year-on-year, and the Iran war disrupting flows through the Strait of Hormuz.

However, gains were uneven, with companies farthest from the conflict capturing the biggest profit leaps. Saudi Aramco, which was hit closest to home, registered the largest profit but the weakest growth.

Western majors Chevron, ExxonMobil, and BP benefited from higher oil and gas prices with limited operational impact, allowing them to capture wider margins on largely uninterrupted production.

Saudi Aramco spent the last quarter rerouting affected export routes and cut hydrocarbon output by roughly 25 per cent from the previous quarter. Shell faced a middle ground, absorbing a major hit to Qatari liquefied natural gas production while benefiting from trading and refining payoffs.