The two largest U.S. oil companies, ExxonMobil and Chevron, on Friday reported blowout profits that easily beat expectations as oil prices remain sharply elevated because of the U.S. war with Iran. ExxonMobil reported a profit that doubled from the same period last year, while Chevron’s earnings surged more than 180% from a year earlier. As part of the bumper returns, Exxon said it was increasing the dividend it pays to investors.
The returns at both companies came as the price of oil surged beyond $100 per barrel and has remained there for months. On Friday, prices accelerated again, with Brent oil trading just under $118 per barrel. The highest level that Brent reached since the United States and Israel launched the Iran war in late February was $126, which it is now approaching again.
Since the start of the year, Exxon shares have risen 52%, and Chevron shares have returned 50%. Overnight, another major oil company, BP, reported that its profit skyrocketed to an 18-year high. The average price of regular gasoline has soared 40% for consumers since the war broke out.
Soaring prices continue to pressure consumers ahead of the midterm elections, where voters have repeatedly said that prices and inflation are primary concerns. In 2024, Donald Trump repeatedly pledged to drive energy costs down. In recent rallies on the campaign trail, the president has celebrated the higher oil and gas profits.
We’re making a freaking fortune.” The higher prices are also a result of the war between Ukraine and Russia following President Vladimir Putin’s full-scale invasion of his neighbor in 2022. Since the start of the year, the average nationwide price for diesel fuel has risen 78%. New York-traded diesel futures have soared 130% since the start of the year, likely indicating more price rises could still come at the pump.
Both Exxon and Chevron said that they were running their refineries at maximum output to continue making as much diesel as possible. Trump has taken specific note of the impact that diesel could have on the economy. The administration has quickly issued multiple orders and policies in an attempt to bring prices down.
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