Oil majors ExxonMobil and Chevron are poised for record earnings as crude prices hit four-year highs amid Middle East supply disruptions.
ExxonMobil and Chevron are expected to report second-quarter profits nearly triple those of the first quarter, driven by crude oil prices reaching a four-year high. The surge follows the closure of the Strait of Hormuz, disrupting Middle East oil flows and depleting global inventories.
Analysts attribute the earnings jump to the worst supply disruption in oil market history, which triggered price spikes and heightened volatility. The first quarter had already seen strong results, but the April-June period outpaced expectations due to geopolitical tensions.
The supply crunch has tightened markets, with U.S. inventories also declining. The impact of the disruption is expected to reverberate through energy sector earnings reports in the coming weeks.