President Donald Trump on Monday sharply criticized oil companies Exxon and Chevron, stating they are "making too much money" due to high oil prices exacerbated by the ongoing Iran war. He urged the companies to reduce retail fuel prices.
"They're making too much money. You're surprised? I'm saying it. I'll say it loud and clear," Trump told reporters in the Oval Office.
The Iran war, which began on February 28, triggered significant oil shortages that caused petroleum prices to surge and directly impacted motorists. These elevated prices have also contributed to substantial profits for some oil companies.
Chevron reported profits of $12 billion for the three months ending in June, a nearly 400% increase compared to the same period the previous year. Exxon announced quarterly profits of $14.5 billion, more than double its earnings from the same three months in the prior year, according to their respective earnings reports from July and last month.
Both Exxon and Chevron declined to comment on Trump's remarks when reached by ABC News. In its earnings report, Exxon noted that market conditions were supportive, attributing its performance to the strength of its portfolio and operating model. Darren Woods, Exxon's chairman and CEO, stated that the company optimized assets and supported customers by moving products where they were needed, leveraging its global integrated portfolio.
Mike Wirth, chairman and CEO of Chevron, highlighted the company's performance amidst "geopolitical uncertainty and market volatility." He credited disciplined investment and strong execution for record U.S. upstream production, record crude throughput in its U.S. refineries, and asset reliability. "Chevron's people remain focused on safely delivering reliable energy the world needs," Wirth said.
The conflict in Iran led to the effective closure of the Strait of Hormuz, a crucial waterway through which approximately one-fifth of the global oil supply is transported. Brent crude futures, a global oil price benchmark, saw an increase of over 60% above pre-war levels by the end of March, reaching as high as $119 a barrel. Prices later fell to $86 per barrel in mid-April after an Iranian official indicated the Strait had been reopened.
Oil prices have fluctuated in recent months due to developments in the war and White House statements regarding its potential conclusion. However, prices have largely remained higher than pre-war levels. As of Tuesday afternoon, global oil prices were $79.40 a barrel. The average price for a gallon of gasoline has risen to $4.08, according to AAA, a nearly 37% increase since the Iran war began.