ExxonMobil CEO Warns Consumers Not to Expect Lower Gas Prices Soon
In Q2 of 2026, ExxonMobil and Chevron reported significant profit increases—Exxon's profits more than doubled while Chevron’s quadrupled. Despite falling crude oil prices from $126 per barrel in spring to around $85-$90, gasoline prices remain above $4 per gallon due to global refinery constraints. Exxon CEO Darren Woods explained that the disconnect between crude and pump prices is largely driven by disruptions caused by the ongoing US-Iran conflict. The six-month-old conflict has reduced refining capacity globally by nearly 9%, with damage affecting Middle Eastern refineries and Asian facilities reliant on Gulf supplies. This has led to elevated crack spreads in U.S. refineries, currently at $50-$60 per barrel compared to the usual $20-$25. Woods noted that even after a potential ceasefire, normalization of oil flows through the Strait of Hormuz will be slow due to lingering uncertainty and reluctance among market participants. Analysts estimate it could take four to six months for full recovery in Gulf oil flows post-conflict resolution, with early 2027 as a base case. ExxonMobil’s refining segment earned $5.5 billion in Q2 after a loss of $1.3 billion the previous quarter, highlighting the ongoing profitability and structural challenges affecting fuel prices.
Topics: Chevron earnings ExxonMobil earnings gas prices oil profits