ExxonMobil and Chevron Warn of Tight Global Fuel Supplies

ExxonMobil and Chevron reported significant increases in second-quarter refining profits on July 31, citing refinery outages in Russia, lower exports from China, and falling inventories. Despite these gains, ExxonMobil and Chevron warned that global supplies of diesel and refined fuels will remain tight through the second half of the year due to ongoing conflict involving Iran.

ExxonMobil CEO Darren Woods stated that restoring shipping through the Strait of Hormuz is critical for crude supplies, noting that current utilization levels are unsustainable for the long term. Chevron CEO Mike Wirth predicted that these constraints will create upward pressure on product pricing into the third quarter and potentially beyond.

The supply shortages occur as U.S. gasoline prices exceed $4 a gallon. Financially, Chevron exceeded second-quarter earnings expectations, while ExxonMobil narrowly missed its targets.