Chevron Downstream Earnings Quadruple, Refining Margins Surge — SkimNews
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- Trump scolded Big Oil in August, saying ExxonMobil and Chevron were making “too much money based on a shortage” as profits surged following the U.S.-Israeli war with Iran.
- Shell, BP, TotalEnergies and Exxon reported sharply higher margins this week in their refined-products businesses, while oil firms said they were running facilities near capacity to meet demand.
- Chevron reported downstream earnings of $4.9 billion on Friday, more than quadrupled from a year earlier, citing higher margins on refined-product sales.
- Ukraine's ongoing drone strikes on Russian refineries, Iran-war disruptions to Middle East energy infrastructure and Houthi attacks on Saudi Arabia compounded refinery closures in Europe and North America, even as new refining capacity was added elsewhere.
- Dan Jørgensen, the European Commissioner for Energy and Housing, said around a quarter of European Union refineries have shut over the past two decades, warning this week of an energy-security “crisis.”
- U.S. emergency diesel stockpile releases and a deal with Russia to supply more diesel to the global market may have limited impact unless supply materially increases, demand weakens or global tensions ease, some analysts said.
- Raphael Portela said a Hormuz settlement would hit refining margins quickly on sentiment, but with inventories depleted, the physical tightness carries well into 2027.
Why it matters: Oil majors gained while consumers faced higher energy prices: Chevron’s downstream earnings more than quadrupled to $4.9 billion as refining margins climbed. With roughly a quarter of EU refineries already shut and depleted inventories, some analysts saw emergency diesel releases as limited relief, while Wood Mackenzie’s Raphael Portela said physical tightness carries into 2027.
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