Oil companies report second-quarter profits

Exxon Mobil and Chevron are projected to report second-quarter adjusted net income of roughly $15.9 billion and $9.9 billion, respectively, according to LSEG estimates. The figures represent more than three times the companies' first-quarter results and would mark the industry's strongest quarterly performance since 2022.

The earnings growth stems from higher refining margins after supply disruptions abroad. Gasoline refining margins averaged about $25 per barrel during the quarter, while diesel margins reached roughly $45 per barrel, according to energy advisory firm TPH.

Trump has called for lower gasoline prices ahead of November's midterm elections. The administration has directed the Justice Department to examine potential gasoline price gouging, and Treasury Secretary Scott Bessent has stated that additional measures remain possible if retail prices do not decline.

Benchmark crude prices have returned to levels seen before recent supply disruptions, yet gasoline prices remain elevated. Analysts attribute the gap to tight fuel inventories, strong export demand, and high refining margins. Industry executives and trade groups state that refining costs, transportation, marketing expenses, taxes, and regulatory requirements account for much of the final price at the pump.

A spokesperson for the American Petroleum Institute said gasoline prices do not move in lockstep with crude oil during major global supply disruptions. Analysts at BMO Capital Markets expect major oil companies to continue prioritizing shareholder returns through stock buybacks rather than increasing production.