Hormuz Tensions Fuel Price Fears: Exxon and Chevron Warn of Continued High Gasoline Costs

Oil majors Exxon and Chevron are warning of continued high fuel prices due to ongoing tensions in the Strait of Hormuz, a critical shipping route. The CEOs of both companies stated that demand for distillates such as diesel and heating oil is unlikely to decline over the long term.

Exxon CEO Darren Woods said that 'the utilization that we've seen can't be sustained for the long term,' while Chevron CEO Mike Wirth added that there will be 'upward pressure on product pricing' into the third quarter and possibly beyond. The CEOs emphasized the importance of maintaining high production levels to meet growing demand.

Exxon reported a record second-quarter diesel production, with U.S. refineries running at high capacity. Chevron also saw record throughput at its U.S. refineries, exceeding 1 million barrels per day. However, both companies anticipate refining challenges in the near future due to scheduled maintenance and potential disruptions to crude supplies.

The rising fuel prices pose a political challenge for President Donald Trump and the Republican Party ahead of the November midterm elections.