Big Oil Refining Earnings Surge on Tight Fuel Supply — SkimNews
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- Trump scolded ExxonMobil and Chevron in August for making “too much money based on a shortage,” as their profits surged during the U.S.-Israeli war with Iran.
- Shell reported sharply higher refined-products margins, while BP, TotalEnergies and ExxonMobil also reported sharp increases in the margins earned from turning crude into gasoline, diesel and jet fuel.
- Chevron said downstream earnings more than quadrupled year over year to $4.9 billion, citing higher margins on refined-product sales.
- Oil majors reported running refineries near capacity, but Ukrainian drone strikes on Russian refineries, Iran-war disruptions and Houthi attacks on Saudi Arabia compounded closures across Europe and North America.
- Dan Jørgensen said roughly a quarter of European Union refineries have shut over the past two decades, warning of a “crisis” in energy security.
- The U.S. released emergency diesel stockpiles and made a deal with Russia to supply more diesel globally, though some analysts said those measures may have only a limited impact unless available supply materially increases.
- Raphael Portela of Wood Mackenzie said Gulf crude barrels were still leaving the region at a steep freight premium, but much of the diesel and jet fuel they would have become was unavailable; he said physical tightness carries well into 2027.
Why it matters: Chevron’s downstream profits quadrupling to $4.9 billion shows who is capturing the refining windfall while consumers face higher energy prices. With about a quarter of EU refineries shut and depleted inventories carrying physical tightness into 2027, analysts said emergency diesel releases and the Russia supply deal may have only a limited impact unless available supply materially increases.
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