DATA & FIGURES
Exxon is estimated to have booked $15.9 billion in adjusted net income, and Chevron’s earnings are seen at nearly $10 billion for the second quarter, more than threefold for both supermajors compared to their first-quarter profits, while refiners such as Marathon are expected to report their highest profits in four years, with Valero also booking a strong quarter
THE SCENARIO
The U.S.-Iran conflict has disrupted global energy markets, leading to a surge in oil and gas prices, and prompting governments to take action, with the Trump administration targeting Big Oil for price gouging, and European lawmakers calling for windfall profits to fund climate action, while the industry argues that geopolitical disruptions, not corporate actions, drove prices higher
DIRECT QUOTE
"The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil, in other words, customers are being ‘gouged’" — Donald Trump, President of the United States
BBN INSIGHT
The Positive Side: The surge in oil prices has led to increased investment in the energy sector, with companies such as Exxon and Chevron expected to post record profits, which could lead to increased economic activity and job creation, The Negative Side: The high oil prices have also led to increased costs for consumers, particularly in the transportation sector, which could lead to decreased economic activity and higher inflation, additionally, the conflict has also led to increased tensions between the United States and Iran, which could lead to further instability in the region
MARKET REACTION
Oil prices have surged in response to the conflict, with Brent crude reaching over $100 per barrel, and gas prices topping $4 per gallon in the United States, while the stock prices of energy companies such as Exxon and Chevron have also increased