Despite soaring crude oil prices due to the U.S.-Israeli war with Iran, major American oil companies Exxon Mobil and Chevron are reporting lower profits. Executives cite disruptions to oil flows, particularly in the Persian Gulf and through the Strait of Hormuz, as the primary cause, anticipating months of recovery even after the conflict subsides.
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Iran War Dampens Oil Company Profits: Exxon and Chevron Report Lower Earnings
America’s biggest oil companies are making less money than before the Iran war
The U.S.-Israeli war with Iran has sent crude-oil futures prices soaring, leading to frustration at the gasoline pump and fears of inflation. That would seem like good news for the largest American energy companies, but Exxon Mobil and Chevron are still waiting to see a windfall.
Exxon Mobil’s XOM and Chevron’s CVX profits fell in the latest quarter, and executives at both companies highlighted the dislocations the conflict is causing. Even when the Strait of Hormuz eventually reopens, it will take months for oil and gas flows to get back to normal. Both companies said they had many barrels of oil stuck in the Persian Gulf, and other oil inventory has been taking longer to reach the market as the Iran war continues to plague their operations. The inability to finish some deliveries affected sales that could be accounted for in the last quarter.
Exxon and Chevron said timing was the main war-related problem plaguing them.
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