US Oil Giants Predict 'Upward Pressure' on Fuel Prices Amid Iran War Disruptions
Top US oil producers ExxonMobil and Chevron are warning of continued high fuel prices due to disruptions in global energy supplies caused by the ongoing Iran war. According to reports, both companies saw large jumps in second-quarter refining profits as declining fuel stockpiles combined with curtailed exports from China and refinery outages in Russia led to higher margins.
Exxon CEO Darren Woods said it is critical that shipping resumes through the Strait of Hormuz to supply more crude to the market. 'The utilization that we've seen can't be sustained for the long term,' he stated on CNBC. Chevron CEO Mike Wirth also commented, saying 'we're going to see some upward pressure on product pricing...into the third quarter and perhaps beyond that.'
The companies reported record throughput at their US refineries, with Exxon producing a record amount of diesel in the second quarter. However, Exxon's adjusted downstream earnings rose to $4.1 billion, narrowly missing consensus estimates for second-quarter earnings.
Investors may have expected Exxon to report stronger refining results given its large refinery footprint. Chevron, on the other hand, surpassed expectations and saw its shares rise by about 2%.