Just days after ExxonMobil and Chevron reported blockbuster second-quarter profits, President Donald Trump said the oil giants are “making too much money” and urged them to lower prices at the pump.
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The numbers
On Friday, Chevron reported quarterly net income of $12 billion — nearly five times higher than the same quarter a year earlier. ExxonMobil reported $14.5 billion in second-quarter profits, more than double the same period last year.
The profit surge comes as the conflict with Iran continues to disrupt global oil markets and shipping through the Strait of Hormuz.
“We’re kind of firing on all cylinders, which is good, because the world needs it,” CEO Mike Wirth told CNBC.
CNBC reported Chevron’s U.S. production reached a record two million barrels per day as exports continue to climb.
The record profits come as oil and gasoline prices have climbed since the U.S. attacks on Iran in late February disrupted global energy markets.
High gas prices
On Tuesday, AAA put the national average price of regular gasoline at $4.08 a gallon, which is more than a dollar higher than before the conflict began, when prices hovered around $3.
Oil prices have fluctuated throughout the conflict, at times topping $100 a barrel. Early Tuesday, Brent crude traded just under $82.
Trump criticizes big oil
The record profits and production by the two oil giants drew Trump’s ire as he spoke with reporters at the White House
“They’re making too much money based on a shortage, I don’t like it,” he said.
Trump went a step further, calling on both companies to lower prices at the pump.
“They’re going to give some of that back to the public,” he said. “And they better cut the retail price, the consumer price.”
Analysts said fully reopening the Strait of Hormuz would restore oil shipments and help ease pressure on global energy supplies.
Treasury Secretary Scott Bessent said he believes a deal with Iran could be reached as soon as Tuesday or Wednesday, allowing commercial shipping to resume safely through the Strait.
Political fallout
Energy analysts said Trump’s criticism reflects growing political pressure as higher gasoline prices become a top concern for voters ahead of the midterms.
“Trump is acutely aware of the political consequences, with the midterms fast approaching, that high oil and high retail gasoline prices make things more difficult on incumbents, particularly Republicans,“ Glenn Schwartz, director of energy policy at the firm Rapidan Energy Group, told the Wall Street Journal.
Last month, a Pew Research survey of 3,554 U.S. adults found that concerns about gas prices “have risen sharply since January” and that the economy is now front and center of many voters’ minds.
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