ExxonMobil, Chevron Face Prolonged Fuel Price Pressure Amid Global Disruptions
Oil giants ExxonMobil and Chevron have reported significant refining profits in their second-quarter earnings, driven by tight global supplies of diesel and other refined fuels. The companies attribute this trend to reduced exports from China, refinery outages in Russia, and lower fuel inventories.
Chevron CEO Mike Wirth stated during an earnings call that the 'upward pressure on product pricing' is expected to persist through the third quarter and potentially beyond, citing strong demand for distillates like diesel and heating oil. ExxonMobil's U.S. refineries operated at high capacity, producing a record amount of diesel.
Exxon CEO Darren Woods emphasized the importance of restoring shipping through the Strait of Hormuz to improve crude supplies, noting that current refining utilization is unsustainable in the long term. Chevron plans to reduce downstream earnings by between $175 million and $225 million due to scheduled refinery maintenance in the third quarter.