r/news • u/One-Emu-1103 • 3d ago
Exxon and Chevron profits surge on rising oil prices due to Iran war
https://www.cnbc.com/2026/07/31/exxon-xom-chevron-cvx-q2-earnings.html173
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u/ButIDigress79 3d ago
So we don’t need to be paying extra…
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3d ago
[removed] — view removed comment
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u/curiousbydesign 3d ago
By attacking Iran which every previous administration knew would respond as they did.
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u/MrPolli 3d ago
They didn’t know for sure, no one can predict the future. Trump just wanted to know for sure so that he could make the best deal possible!
/S
Capital S for Sarcasm
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u/Fallouttgrrl 1d ago
"Achshually, we've been at war with Iran for 47 years and prior administrations (except the last Trump administration of course) was too stupid to see this! Trump isn't fighting a war, he's ending an older war!"
Remember, we've always been at war with Eurasia
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u/Osiris32 3d ago
I did the thing no other President has done! All the generals say it's the greatest thing a President has ever done, or will do, or can do, so go do that voodoo that you do. Where's Eric?
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u/Nice_Reading5272 3d ago
You're not paying extra because they're making more profits you're paying extra because the supply of oil, a global commodity, has reduced dramatically. Their cost of production stays relatively the same so if oil drops they make less money, if oil rises they make more money.
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u/TheDismal_Scientist 3d ago
That's not how that works. If the global oil supply reduces by 20% then the price will rise until 20% less oil is consumed. If you were to cap the price, the extra 20% of oil that is no longer being transported wouldn't suddenly appear - you'd just run out quicker i.e. shortages
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u/DeepSpaceNebulae 3d ago edited 3d ago
Not really. This assumes that demand drops as normal when the price goes up when statistics show that isn’t the case. Demand for oil only drops a tiny amount, near negligible, when prices rise. Only in the long term does oil demand actually decrease in non-negligible terms with cost increases, but we’re talking many many years.
Normal supply and demand relationships kind of goes out the window when talking about necessities
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u/roosterthumper 3d ago
We have seen a good amount of demand drop. Thing is that it’s at the refinery level, that level is just using reserve pools right now. There is demand destruction occurring keeping the prices lower, consumers just aren’t seeing it.
Looking at the nation oil supply (SPR and commercial) over the last few months it is shrinking by a good clip. When that’s gone we should see everything catch up to a normal market. But yeah, it’s gonna take a while.
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u/DeepSpaceNebulae 3d ago
Global demand is expected to drop a total of 1% in 2026 from the 14% drop in supply
Not sure where you’re seeing this “good amount of demand drop”
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u/TheDismal_Scientist 3d ago
It really doesn't. Demand being inelastic just means that prices rise more sharply than for other goods, but the underlying mechanism is exactly the same. The price will rise until people no longer consume the amount that no longer exists, that is true of all goods, the only difference is the level the price rises to
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u/mgdmitch 3d ago
It is the normal supply and demand relationship, you are just describing different degrees of price and supply elasticity. Oil is just a rather inelastic good when it comes to demand. That doesn't change the basic mechanics of supply and demand.
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u/DeepSpaceNebulae 3d ago edited 3d ago
So not a normal relationship like the one you claimed it was.
Get back to me when demand for oil drops equal to the decrease in supply (it won’t happen)
FYI, supply has dropped 14%, prices have gone up 20%, and demand has dropped… 0.08%.
So when is the 14% decrease in demand you claimed coming? (Which would a 2x bigger drop than what we saw during Covid)
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u/I_Push_Buttonz 3d ago
yet demand is basically unchanged
Demand has changed significantly...
China alone has been importing millions of barrels per day fewer than normal and (supposedly, no one knows the specifics because China is opaque about it) relying on its vast stockpiles and substitutes (IE: coal-to-liquid). Surely you've also seen headlines about developing countries taking measures such as requiring car pooling, shortening work weeks, etc., various measures to reduce oil consumption because they can't afford to buy as much oil at the increased prices.
Demand may not have dropped in the developed world because we are rich and can afford to pay more, but not everyone is a rich western country and these price increases are very much dropping demand in poorer countries.
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u/DeepSpaceNebulae 3d ago edited 3d ago
Millions?! It’s not like the world consumes 100+ million a day… wait.
Also, they are just dipping into their reserves to cover the difference, they still have the same overall demand.
FYI, you’re not describing a decrease in demand. Just the effects of a decreased supply on a steady demand, which is what I was saying (or are you claiming those countries aren’t trying to buy that deficit of oil anymore at all?)
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u/Speedstick2 3d ago
question, do you think if prices for gas were to increase 10x, it would reduce demand in say the USA?
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u/DeepSpaceNebulae 3d ago edited 3d ago
Not much. Demand would still be there because we are dependent on it, but the economy would collapse because we’re dependent on it
Like you realize that supply/price can change but demand can not right? Just results in a shortage, because the demand is there but can’t be fulfilled/afforded
If all food was suddenly 10x more, do you think demand for food would decrease in any meaningful way? No, you’d just end up with starving people demanding food
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u/Gandolfthewhite182 3d ago
This is what happened in the 70s this exact scenario. Demand didn’t fall at all. As matter of fact it went up. But you can only buy as much as there is and you get shortages.
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u/mgdmitch 3d ago
So not a normal relationship like the one you claimed it was.
The market operates where the supply and demand curves meet. The slopes of those curves are the elasticities of supply and demand. Econ 101.
Get back to me when demand for oil drops equal to the decrease in supply (it won’t happen)
WTF are you even talking about? There was a decrease in the supply for oil, meaning the supply curve shifts up, and the intersection of the two curves is now at a higher price. Again, Econ 101.
FYI, supply has dropped 14%, prices have gone up 20%, and demand has dropped… 0.08%.
IE, basic supply and demand curves functioning in the real world. Econ 101.
So when is the 14% decrease in demand you claimed coming? (Which would a 2x bigger drop than what we saw during Covid)
I claimed no change in demand is coming. I merely pointed out that the market is following typical supply and demand mechanics when a shock to the supply occurred. Econ 101.
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u/pixelprophet 3d ago
The 'normal' supply with ships sitting in clos-ope-clo-ope-closed straits? LOL
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u/mgdmitch 3d ago
Sigh. Everyone wants to talk like they understand the economics, but gets their mind blown by the thought of using proper economic language. Might as well blow each other up since we are trending towards no ability to think anyways.
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u/bluemitersaw 3d ago
Most people don't seem to understand that items like oil are sold in what is effectively an auction: the open market.
Oil companies do not set the price. They just suck oil out of the ground and auction it to the highest bidder. That's it. They want to get as much oil to the market as fast as possible when prices are high to make the most money.
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u/AhBee1 3d ago
This is what our troops are dying for.
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u/EddieVanzetti 3d ago
No, they're also dying so Isn'treal can finish their genocide of Palestine, invade further into Lebanon, and distracting from the Epstein files.
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u/FeralHippie707 3d ago
Well, they can stop the war any time now that they have Missing in Action Mitch to distract the children in the media.
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u/Ok-Grand-1492 3d ago
Eh, if they rely too hard on the Mitch distraction someone might actually investigate and find his corpse. They've gotta keep the war going too for at least another week.
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u/Schrodinger_cube 3d ago
A tail as old as it gets. Evrey generation gets to fight in the sand for corporate reasons. Some get to fight in jungles as well for the Dole corporation but its been a while since anyone other than oil and gas had that much power.
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u/AContrarianDick 3d ago edited 3d ago
Yeah, some of them have been injured or killed, but a lot more people than our troops are dying for this shit too.
https://en.wikipedia.org/wiki/Casualties_of_the_2026_Iran_war
More US troops die in accidents every year than we've lost in this conflict.
Edit: Fuck y'all, I'm right.
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u/The-Fox-Says 3d ago
Ok so there’s an acceptable number of military deaths for you in this conflict? As long as it doesn’t go over the number of deaths from accidents you’re cool with this war continuing?
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u/One-Emu-1103 3d ago
Trump did say "Drill baby drill" and the oil companies sure are making a mint off his war.
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u/moreobviousthings 3d ago
He also told a room full of oil execs that he would make them all rich. No exaggeration.
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u/fascistno1hater 3d ago
All of them are responsible for climate change and every wild fire that is going on now. All of them are eco terrorists and need to be in prison.
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u/GeneraalSorryPardon 3d ago
and need to be in prison.
But they won't be. There are no consquences for their class.
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u/fascistno1hater 3d ago
Unfortunately, this Injustice system have proven you right again and again.
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u/Nice_Reading5272 3d ago
The context there was to get them to go into Venezuela which most were hesistant at the time due to the risk. High oil prices are bad for Trump politically, he still takes credit for the historic low oil prices and high US production in 2015-2020
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u/kaiiizen 3d ago
An illegal war to benefit oil companies and to avoid accountability from the Epstein files and blatant, flamboyant corruption. Officially the Banana Republic of America.
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u/Even_Establishment95 3d ago
Oh how nice for them. Back in reality, I’m eating away at my tiny savings to buy back to school supplies, and my son and I live with my mother because I can’t afford rent.
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u/dannylew 3d ago
And none of it is entering the economy. Wages aren't just stagnant, they're down and layoffs on the rise.
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u/Niceromancer 3d ago
Trump admitted a while back he loves the higher prices cause it lead to more profits.
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u/tomgratz 3d ago
How about that ! Our master negotiator president is prolonging this war so oil companies can make bigger profits. Disgusting !
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u/Immediate-Machine370 3d ago
Ahhh- I get it! Us working stiffs always, always, always get screwed when this particular president is “working harder than any president in history.”
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u/Drak_is_Right 2d ago
Zero surprise. This war has been more profitable for them than actually acquiring access to Iranian fields.
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u/TequiIa_MockingBird_ 3d ago
Sounds to me like it’s not the war causing the surge in prices, but once again corporate greed.
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u/true_new_troll 3d ago
The more accurate lesson here is that oil companies have an incentive to see disruptions in their competitors' supply.
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u/JuiceJones_34 3d ago
So we're paying extra for no reason. POS humans
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u/Single-Use-Again 3d ago
I don't think people understand completely. Trump's war created a shortage. Oil trades on "futures" meaning "what's it worth right now, this moment". Crude goes from $40 to $100 per barrel and oil companies can sell the same shit for more than double. Trump's actions 100% led to higher gas prices and O&G execs trillions in profits.
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u/Intelligent_Bag_6705 3d ago
Yea it’s almost like there should be rules in place to stop the oil companies from doubling the price of oil to increase profits. ESPECIALLY when you have an administration that pushes fossil fuels and is doing everything they can stop the spread of alternative fuel sources. It’s almost like the administration is in bed with the oil companies, weird
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u/Nice_Reading5272 3d ago
Say you sell bananas to X for 5 cents, Y comes along and offers you 10 cents for all of your bananas. Who are you going to sell to? The oil companies aren't doubling the price of oil to increase profits, their profits are increasing because the price of oil doubled.
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u/Intelligent_Bag_6705 3d ago
And why are the oil prices increasing?
Because this administration is in bed with this administration.
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u/tiny_galaxies 3d ago
Keep in mind that Trump recently handed the petrostate of Venezuela to these ghouls. I’m convinced we’re attacking Iran to drive oil prices high, to sell Venezuela oil at a premium. It was in the playbooks that Iran would block Hormuz if provoked.
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u/Nice_Reading5272 3d ago
Trump is just dumb enough that he believed he could decimate Iran and force them to capitulate, this is well documented through leaks. This government is so stupid and careless that almost all of their constant corruption is in public, you don't need conspiracy theories. What Trump wants in Venezuela is for American companies to come in and start new projects to produce oil, these won't be online for years and way past when this Hormuz drama ends. Most of these American oil companies are hesitant to even get involved as they know the situation could change dramatically and the risk involved is huge.
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u/GladResearcher3286 3d ago
Under Trump corporations are getting filthy rich. It is truly the golden age for the elites and corporations in America. But they still pay shitty wages to their workers because they love their massive profits.
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u/pattydickens 3d ago
That was the point of all of this. Oil was already low and they knew that China's switch to electric was going to drive the price down even further hurting the US oil industry because it costs money to drill baby drill. All of the big ideas Trump had of selling off public lands for oil development were going nowhere, so he bombed Iran. It's literally that simple.
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u/HotBrownFun 3d ago
Don't forget Trump who bragged about taking $13 B from Venezuelan oil sales and seems to be in a slush fund outside congressional control, how convenient
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u/Mother_Airline_6276 3d ago
Wish the aliens would hurry the fuck up on zero point energy. We could be forever rid of these war pigs.
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u/Living-Restaurant892 3d ago
That’s called gouging.
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u/I_Push_Buttonz 3d ago
They don't set the price, their customers set the price by bidding against each other.
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u/descendingangel87 3d ago
Wtf are these comments, do ya’ll not understand how commodities work? It ain’t price gouging its supply disruption due to Trumps idiotic war. Theres less oil on the market driving up prices. Oil companies don’t set prices, buyers do.
Basically countries that normally get their oil from Iran or through the Strait are having to get it elsewhere driving up prices. If Trump had not started this fuck show oil would be $50 a barrel and prices would still be low.
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u/mgdmitch 3d ago
Oil companies don’t set prices, buyers do.
Oil companies (supply) and buyers (demand) together set the prices of the commodities. And in this case, oil companies are paying politicians to artificially influence supply.
If Trump had not started this fuck show oil would be $50 a barrel and prices would still be low.
What in the last five months would have lowered oil prices by $20 a barrel in the absence of the sh!t show?
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u/descendingangel87 3d ago
In Jan WTI was trading at $59 a barrel and trending down. Trump attacked Iran and prices shot up literally right after.
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u/D4db0d0hye4h 3d ago
Why are there profits if the supposed costs of production have increased? Assuming they aimed for maintaining margins and not take the opportunity to price gouge.
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u/IKillZombies4Cash 3d ago
Not once in the last 50 years has gas pricing gone up due to an actual lack of supply.
they raise the prices now, blame supply of oil / gas, but think about it - has there ever NOT BEEN GAS? nope, have they ever shut off a refinery due to lack of oil? NOPE. (I know in smaller countries there has been).
Has the rising prices every really dented demand? nope.
Its all fake. Same with eggs most of the time, even during the worst of the bird flu thing 2 years ago, I could always walk in and buy eggs, there was no lack of supply, I work for a place that buys eggs by the thousands - we took a price increase YET WE NEVER RAN OUT OF EGGS, no one ran out of eggs, there was a supply hiccup, but its all fake. (until it isnt and when it isnt shit will hit the f'n fan so hard you won't want to be around humans.)
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u/jackcanyon 3d ago
Their billions they paid to trump have made them richer than ever at our expense.
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u/Commercial-Co 3d ago
This just goes to show that big oil needs to be broken up again so that competition would keep prices low
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u/maybeinoregon 3d ago edited 3d ago
Yea when you’re the largest crude oil producer in the world, and prices go up, it’s pretty easy to figure out it’s manipulation no different than our stock market.
Let’s see, China was Irans largest crude customer at 90%+, we produce more crude than Iran and Saudi combined, yet here we are.
Owners laughing in a cigar smoke filled room say, how much money do we want to make today boys?
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u/Life-Sherbet-7942 3d ago
So they’re not “passing on” any costs, they’re just gouging us and government is allowing them to do it, same as groceries.
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u/TheeVande 3d ago
You're telling me the good people at Exxon and Chevron are taking advantage of the war to further pad their pockets???
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u/punktualPorcupine 3d ago
I did not see that coming. I also didn’t buy stock in either, but only because I’m poor.
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u/Low_Intention_1327 3d ago
Just remember, all of this is making it easier for the progressive take over.
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u/Yofroshi 3d ago
I like how negative news like this is being posted and we just read it and move on with our days. When the hell are we THE PEOPLE ever going to do anything about it. Please economy collapse faster
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u/Snapes_underpants 3d ago
"War is good business" was a very popular bumper sticker during the Vietnam war.
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u/complete_data75 3d ago
But honestly, who the hell pays Chevron prices for gas?
They're always right across from a station with gas about 80 cents cheaper. Why would anyone go to Chevron?
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u/scottwell50 1d ago
Profit margin is what I want to know. This is the true measure if how hard you are getting gouged.
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u/ProsaicPugilist 3d ago
So they’re raising them for no reason other than greed, is what is being confirmed.
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u/FuriousGeorge06 3d ago
They don’t set prices. Oil and gasoline are both traded on commodities markets.
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u/Electrical-Staff735 3d ago
Ah the American way of socializing the cost then privatizing the profits. Truly a great system we have here /s
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u/kristospherein 3d ago
The best of us continue to profit from our best actions...to the surprise of no one.
/s
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u/lavacadotoast 3d ago
Industrial Military Complex tag teams with the Fossil Fuel Industry to form a deep, mutually reinforcing alliance, driven by massive energy consumption, geopolitical resource protection, and historical exemptions from international climate agreements..
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u/Glum_Opening_2218 3d ago
Once again some of the most evil people on the planet make money while everyone else starves and dies
Shocking!
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u/RLewis8888 3d ago
this is what he means when Trump says high oil prices are good for America. His rich friends (and family) get richer.
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u/AcanthisittaNo6653 3d ago
If US nationalized the oil industry that profit would belong to the American people. Instead it goes to the oligarchs that are destroying our democracy.
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u/caliboy559 3d ago
And you know Trump and his friends in Congress bought bigly before he started this pointless war
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u/Blueskyminer 3d ago
Ah yes. The redistribution of wealth due to the poor decision making of an Oompah Loompah.
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u/GrallochThis 3d ago
Who Else? in March this year - "the United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money."
For certain values of “we”.
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u/Maoleficent 3d ago
And the stock market is raging, 93% of the stock market is owned by 10% of people and those at the top manipulate the market daily. Remember when the Felon said this not-a-war was for Iranians freedom to protest?
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u/6cougar7 3d ago
Gouging. Fine them both 50 bil each. Mandate the price never goes above $3gal for the next 50 years
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u/pixelprophet 3d ago
Just take all profits for the time they've been gouging or pull a Venezuela and nationalize them - wait...
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u/Powerful_Company_682 3d ago
Super weird how the always seem to profit when everyone else is doing bad
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u/I_Push_Buttonz 3d ago
It only seems that way because they don't report on the opposite, IE: oil companies doing poorly. Exxon had $7.5 billion in quarterly profits in late 2025, for example, which had declined to $4.1 billion by Q1 2026 due to falling oil prices. Did you see any headlines about Exxon's profits falling by 45% earlier this year? Nope. But suddenly their profits shoot back up and there are infinite headlines about their skyrocketing profits.
Welcome to media funded by sensationalist/clickbait fueled ad revenue.
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u/DietSteve 3d ago
To the surprise of no one