US refiners are on track to report a more than fourfold increase in profits due to surging diesel and petrol prices caused by Donald Trump’s Iran war and Ukrainian attacks on Russian energy facilities. Eight listed independent US refiners are expected to report combined profits worth $32.4bn in the two quarters since the war began, compared with $6.8bn in the same period last year. Revenues are forecast at $325.5bn versus $242.9bn last year.
The Iran war and Ukrainian drone attacks on Russian refineries have pushed up global fuel prices to near-record levels. Despite increasing domestic production, the US has not been immune to the energy shock, with diesel prices surging by more than $2.50 to $6.38 per gallon since the US and Israel attacked Iran on February 28. Refiners’ profit margins were approaching levels last seen during the energy crisis sparked by Russia’s full-scale invasion of Ukraine in 2022.
The three biggest independent refiners, Valero, Marathon Petroleum and Phillips 66, are expected to generate net income of $8.7bn, $10.9bn and $7.9bn respectively in the six months to end September. US refinery output hit a five-year high of 17.4mn barrels per day in August as they ran above 95 per cent of capacity for 15 straight weeks. Exxon Mobil and Chevron are also enjoying a profits bonanza, with Chevron reporting its highest quarterly profit on record in three months to end June.
Source: Financial Times Companies · Summarized by HeadlinesBriefing