US oil companies see big jump in profit

US oil companies are set to report their strongest quarterly profits in years, courting a possible clash with President Donald Trump, who has been pressing his longtime ally Big Oil to bring down gasoline prices before midterm elections in November. After months of Americans complaining about pain at the pump, Exxon Mobil and Chevron are expected to report second-quarter earnings in the coming weeks that are more than triple first-quarter levels. Oil prices spiked after the U.S.-Israeli war on Iran began in late February and global fuel supplies tightened.Also read | June: 10 mbpd, May: 3 mbpd: Gulf oil exports up, but 40% below pre-war level"The industry is definitely talking to each other and thinking of ways to deal with it, but we know what's coming. We understand the politics," said one industry executive, speaking anonymously. Since shipping through the Strait of Hormuz resumed last month, Trump has said he wants the national average to fall to about $2.50 a gallon - well below the current average of roughly $3.85 and about 11% below the low for his current presidency of roughly $2.81 reached in late December. Oil industry lobbyists have stepped up outreach to officials and lawmakers to blunt criticism, according to interviews with eight lobbyists and industry officials. Oil executives say they have limited influence over retail gasoline prices. Crude oil prices account for nearly half of the price consumers pay at the pump, with the rest determined by refining, distribution, marketing and taxes. Still, benchmark crude prices have returned to pre-war levels yet U.S. gasoline prices remain about 22% higher than before the war. Analysts and industry groups cite tight physical fuel markets and constrained gasoline inventories rather than crude oil prices alone.

from Economic Times https://ift.tt/kN01BKG