U.S. oil majors face criticism over high earnings as crude futures drop following presidential remarks on excessive profits.
President Trump criticized Exxon Mobil (XOM) and Chevron (CVX) for generating excessive profits, calling on the companies to lower retail gasoline prices. His comments targeted the two largest U.S. oil firms amid soaring earnings in the sector.
The remarks followed a sharp decline in crude oil futures, though gasoline prices typically lag behind crude movements. Industry groups attribute high fuel costs to global supply-demand dynamics and shipping lane uncertainties, rather than corporate pricing strategies.
Markets reacted swiftly, with crude futures extending losses after the statement. Analysts noted the disconnect between upstream profitability and downstream pricing pressures.