US President Donald Trump has criticised the country’s largest oil and gas companies after Chevron reported its strongest quarterly earnings in six years, while petrol prices climbed above $4 a gallon across the United States. Trump’s comments on Monday followed Chevron’s results on Friday and came as tensions between the US and Iran disrupted global oil supply chains.
The surge in company profits has sharpened public anger because households are paying more at the pump. The average US petrol price reached $4.09 a gallon, according to the American Automobile Association, while lower-income households are devoting more than 10 percent of their monthly income to fuel, according to a Bank of America analysis.
Chevron leads a strong quarter for oil companies
Chevron reported adjusted earnings of $12bn, equivalent to $6.06 per share, its highest quarterly profit in six years. The Houston-based company’s results benefited from higher global oil prices during a period when conflict-related disruption put pressure on supplies.
Brent crude, the international oil benchmark, was 23 percent higher than in the first three months of the year. Chevron was also relatively protected from the disruption because less than 5 percent of its operations are exposed to the Strait of Hormuz, according to Bill Drolet, an executive director at investment bank The Post Oak Group.
More than 70 percent of Chevron’s production is concentrated in the United States, where Drolet said the company was achieving its strongest margins. Chevron also benefited from the administration’s decision to expand oil production in Venezuela. The company did not respond to a request for comment.
ExxonMobil and refiners also report major gains
ExxonMobil recorded $9.2bn in quarterly earnings, its best result in four years, although the figure was below analysts’ expectations. Valero Energy reported a record second-quarter profit on Thursday, with net income of $3.7bn as US refiners benefited from tighter oil supplies linked to Middle East tensions.
Chevron chief executive Mike Wirth had discussed the company’s performance in a Fox News interview before Trump rebuked him on Truth Social. The president said Wirth had failed to recognise his administration’s contribution to the oil industry and later told reporters that Chevron and ExxonMobil were making “too much money”.
Chevron rewarded employees after the results. Reuters, citing an internal email, reported that most workers would receive a bonus equal to half a month’s base pay. Al Jazeera said it could not independently confirm that report. The companies’ gains have not translated into lower prices for drivers, leaving the political dispute focused on who should absorb the cost.
Households face rising costs and limited relief
AAA said the average petrol price rose from $2.98 a gallon when the US and Israel first struck Iran in late February to $4.09. The latest figure was slightly below $4.11 a week earlier but above $3.82 a month earlier.
Bank of America found that consumers spent as much as 4.2 percent of their income on petrol in March, compared with 3.9 percent in 2019. The burden was substantially heavier for lower-income earners: more than 10 percent of households spent over 10 percent of their monthly income on fuel.
The US Strategic Petroleum Reserve also fell by 2.8 million barrels in one week to 304.8 million barrels, its lowest level since 1983, according to the Department of Energy. That decline adds pressure to a market already affected by supply concerns.
Political pressure grows before the midterms
Criticism has come from both parties. Democratic Senator Sheldon Whitehouse accused oil companies of benefiting from excessive pricing, while Trump said he disliked the size of their profits. The issue is particularly sensitive ahead of the November midterm elections, with 54 percent of respondents in a Washington Post/Ipsos poll identifying high prices and the economy as a chief concern.
Companies may be able to reduce share buybacks or dividends, but Drolet said shareholder responsibilities make an immediate voluntary price cut unlikely. He identified temporary suspension of state petrol taxes as a possible way to provide relief.
Those taxes vary widely, from 20 cents per gallon in Texas to 63 cents in California. The White House did not say whether suspending the taxes was under consideration. Meanwhile, Chevron shares were down more than 2 percent in midday trading, though they remained up over five days; ExxonMobil was also lower on the day.
Also read: Bab al-Mandab Strait Tensions Drive Brent Crude Above $100 Amid Middle East Crisis.
More context: Rising Middle East conflict pushes oil prices above $95 per barrel.
Related coverage: US strikes on Iran trigger rise in oil prices and fall in global stocks amid Hormuz tensions.
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