President Donald Trump on Monday publicly rebuked US oil majors, saying they have "made too much money" as fuel costs rose amid the Iran conflict. He singled out ExxonMobil and Chevron and said companies should "give some of that back to the public" by cutting retail prices, the White House briefing and coverage of his remarks reported. Trump repeated he was "not happy about it" and pressed firms to ease pump prices for consumers.
The surge in profits has coincided with disruptions to shipping through the Strait of Hormuz, which helped lift global crude and refined product prices. ExxonMobil reported $14.5 billion in second-quarter profit and Chevron posted about $12 billion to $12.2 billion for the same period, according to company results and media reports. Europe’s Shell nearly doubled quarterly net profit to almost $10 billion, and Saudi Aramco reported a 44% rise in net profits to $32.69 billion in the comparable quarter, the coverage said.
Higher oil costs have translated into pricier gasoline for US motorists. US retail pump prices have climbed above $4 a gallon from about $3 before the conflict, and the Energy Information Administration notes crude accounts for roughly half of a gallon’s cost, with refining and distribution making up the rest. A recent poll cited in media coverage found many Americans say elevated fuel costs are causing financial strain.
Industry Results And Company Responses
BP on Tuesday reported an underlying replacement cost profit of $5.7 billion for April to June. That figure beat analyst expectations, the company and market reporting showed. BP said operating cash flow was $10.9 billion and net debt fell to $22.25 billion from March. The company raised its ordinary dividend by 4% to 8.66 cents a share and said it had started marketing its Archaea Energy biogas business for sale.
BP chief executive Meg O’Neill told CNBC she understood consumer pressure over pump prices and described fuel as a "global commodity" whose price tracks global markets. She said BP had adjusted refining runs to prioritise availability of key products like jet fuel and diesel. Analysts at Citi said BP's debt reduction removed it from an unwanted position among international oil companies and noted the dividend increase as a nod to improved financial strength.
Executives and shareholders face scrutiny as firms post record or near-record results. Media reports indicate political pressure from the White House and public criticism will likely intensify as companies decide on dividends, buybacks and refinery operations. Oil firms have said market factors largely determine prices, while politicians including the president demand concrete steps to ease consumer pain.
