Fuel Prices May Stay High Amid Ongoing Iran War Disruptions

Global fuel prices are expected to remain high through the second half of this year due to ongoing disruptions in energy markets caused by the war involving Iran. ExxonMobil and Chevron, two major U.S. oil giants, reported significant increases in refining profits for the second quarter, driven by falling fuel inventories, reduced exports from China, and refinery outages in Russia.

According to Mike Wirth, CEO of Chevron, demand for distillates such as diesel and heating oil is unlikely to decline over the long term. This, combined with tight global supplies, will keep prices elevated. The two companies are maximizing production to meet growing demand, but disruptions to crude supplies remain a challenge.

ExxonMobil's U.S. refineries operated at high capacity during the quarter, resulting in record diesel production. Chevron processed more than 1 million barrels of crude per day, also a record. However, restoring shipping through the Strait of Hormuz remains crucial to improving crude supplies.