Trump called out Big Oil profits. Here’s how much their refining earnings have surged since
Trump criticized Big Oil for making “too much money,” but oil majors have since reported surging refining earnings as fuel supplies tightened.
TL;DR
- Oil majors like Shell, BP, TotalEnergies, ExxonMobil, and Chevron have reported sharply higher refining or downstream earnings.
- Tight fuel supplies and elevated refining margins are driving these profits.
- Factors contributing to tight supplies include refinery disruptions in Russia and the Middle East, and closures in Europe and North America.
- Ukrainian drone strikes on Russian refineries and disruptions linked to the Iran war and Houthi attacks have impacted supply.
- Around a quarter of refineries in the EU have shut in the past two decades.
- These earnings are nearing levels seen during the 2022 energy shock.
- Consumers are facing higher energy prices while oil companies profit.
- Analysts believe political efforts to tackle prices may have limited impact without increased supply or eased tensions.
- Physical tightness in refined fuels is expected to persist well into 2027, with a settlement in the Strait of Hormuz potentially impacting margins quickly due to depleted inventories.