Oil majors set for record profits as Gulf conflict boosts prices
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The world's five largest oil companies are expected to report combined quarterly profits of $45.8 billion, the third-highest in industry history, according to analyst estimates. The surge follows a spike in crude prices above $120 per barrel in late April due to supply disruptions from the escalating Gulf conflict. Even as prices have since moderated, refined product markets remain tight, sustaining high margins for producers.
Profit Drivers
Analysts attribute the earnings surge to three main factors: the sharp rise in crude prices after the Gulf escalation, high refining margins, and increased volatility in global energy markets. U.S. majors ExxonMobil and Chevron are expected to be the primary beneficiaries, while European firms Shell, BP, and TotalEnergies also anticipate strong results from their trading divisions.
Market Outlook
Despite a pullback from April's peak, oil prices remain elevated, with Brent crude trading near $110 per barrel as of mid-July. The supply disruption — the largest in years — has kept product markets tight, with gasoline, diesel, and jet fuel prices staying high. Analysts warn that elevated fuel costs could persist for years, adding to inflationary pressures globally.
What's Next
The companies are set to release their quarterly earnings in the coming weeks, with ExxonMobil and Chevron reporting on August 1. It remains unclear how long the supply disruption will last and whether OPEC+ will adjust output to stabilize prices.
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Oil majors set for record profits as Gulf conflict boosts prices
