President Donald Trump criticized ExxonMobil and Chevron on Monday, stating the companies made “too much money” due to rising crude oil prices caused by the war in Iran. Speaking to reporters at the White House and during an executive order signing in the Oval Office, Trump told journalists, They’re making too much money based on a shortage
and I don’t like it.
Trump Demands Gas Price Cuts Following Oil Company Windfalls
The president demanded that the oil giants give some of that back to the public
and warned that they better cut the retail price, the consumer price.
The remarks follow second-quarter earnings reports released Friday. Chevron’s earnings rose nearly 400% to $12 billion, compared to $2.5 billion in the same period last year. ExxonMobil’s profits more than doubled to $14.5 billion from $7.1 billion in the year-ago period. Other firms, including Marathon Petroleum and Valero Energy, also reported massive profits. Valero posted its strongest quarterly profit since the 2022 energy crisis.
Impact of the Iran Conflict on Energy Costs
The surge in prices stems from a conflict that began on Feb. 28, when the U.S. and Israel attacked Iran. In retaliation, Tehran attempted to choke oil exports through the Strait of Hormuz, resulting in the largest supply disruption in history.
The financial impact on consumers and markets includes:
- Gasoline Prices: Nationwide averages reached approximately $4.10 per gallon on Monday, an increase of nearly 40% from the $2.98 per gallon paid on Feb. 27.
- Crude Oil Futures: From April through June, U.S. oil futures averaged around $92 per barrel, roughly 27% higher than the first quarter.
- Overall Crude Increase: U.S. crude oil prices have climbed about 20% since the Feb. 28 attacks.
While Brent crude fell more than 4% to about $84 a barrel on Monday amid hopes for diplomatic progress, Trump predicted that oil prices would drop through the floor
once the conflict ends.
Political Stakes and Corporate Pressure
The president’s comments come as high fuel costs create a political risk ahead of November’s midterm elections. A recent CBS News poll indicated that about half of Americans are experiencing financial difficulties due to elevated fuel costs, and eight in 10 respondents believe the administration is not focusing enough on lowering consumer prices.
Trump has previously directed the Department of Justice to investigate industry gouging
in June. This current approach mirrors his first term, during which he used his platform to pressure pharmaceutical companies to lower drug prices and urged automakers to maintain U.S. production.
On Monday, Trump specifically targeted Chevron CEO Mike Wirth following Wirth’s appearance on Fox News’ “Sunday Morning Futures.” In a Truth Social post, Trump claimed Wirth failed to credit the administration’s efforts, asserting that without the genius, foresight, strength, and stability
of his administration, the oil industry would be DEAD!
Industry Response and Market Dynamics
A spokesperson for the American Petroleum Institute stated that higher prices are driven by global supply, demand, and uncertainty regarding critical shipping lanes, rather than any single company.
Regarding operations in Venezuela, Trump noted that Chevron is back, far bigger and stronger than ever before
after previously being thrown out of the country. While Chevron has operated in Venezuela for over a century, ExxonMobil and ConocoPhillips chose to exit the country when Hugo Chavez nationalized oil projects in 2007. Chevron executives have stated that increased crude imports from Venezuela are helping to curb U.S. gas prices.
According to the Energy Information Administration, the cost of a gallon of gas is determined by several factors:
- Crude Oil: 51%
- Refining: 20%
- Marketing and Distribution: 11%
ExxonMobil and Chevron did not immediately respond to requests for comment. Following the president’s remarks, Exxon traded slightly lower and Chevron shares dropped nearly 2%.
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