Two US oil giants warn: Continued war against Iran to keep fuel prices high

Pars Today – US oil giants ExxonMobil and Chevron have warned that the continuation of the war against Iran and disruptions to shipping through the Strait of Hormuz could keep fuel prices elevated for an extended period.

According to Pars Today, citing IRNA, ExxonMobil (XOM.N) and Chevron (CVX.N), the two largest US oil producers, warned that global supplies of diesel and other refined petroleum products could remain constrained because of the war against Iran, leading to persistently high energy prices during the second half of this year.

The two companies, while reporting a sharp increase in second-quarter refining profits, attributed the gains to lower fuel inventories, reduced exports from China, and refinery shutdowns in Russia, all of which resulted in higher refining margins.

Chevron CEO Mike Wirth said during a briefing: “We expect upward pressure on product prices in the third quarter and likely beyond.”

He added that demand for distillate fuels, including diesel and heating oil, is unlikely to decline over the long term.

The higher refining margins and resulting profits for the two US oil companies come as gasoline prices in the United States climbed above $4 per gallon again last week. According to Reuters, the situation could pose a political challenge for US President Donald Trump and the Republican Party ahead of the November midterm elections, although both Chevron and ExxonMobil stressed that they are making every effort to maintain high production levels.