Trump says ExxonMobil and Chevron made 'too much money' during Iran war, calls for lower gas prices
The Facts
- Trump told reporters at the White House on Monday that ExxonMobil and Chevron are "making too much money" based on a shortage and that he does not like it.
- Trump said the companies should "give some of that back to the public" and cut retail gasoline prices.
- Chevron reported second-quarter profit of about $12 billion, up from roughly $2.5 billion a year earlier, while ExxonMobil reported about $14.5 billion, up from roughly $7.1 billion.
- In Truth Social posts Monday, Trump criticized Chevron CEO Mike Wirth for not crediting his administration during a Fox News interview, and said his administration helped the industry including by opening a market in Venezuela.
- U.S. gasoline prices remain above $4 a gallon, compared with roughly $3 a gallon before the war began.
- High gasoline prices are a political issue for Trump's Republican Party ahead of November midterm elections, in which Democrats are seeking control of Congress.
- The profit surge is attributed to higher oil prices stemming from the Iran war and disruption of shipping through the Strait of Hormuz.
- Trump predicted oil prices would fall once the conflict with Iran is resolved.
- Exxon and Chevron did not immediately respond to requests for comment on Trump's remarks.
Context
What has happened to oil prices?
Brent crude, the international benchmark, fell more than 4% on Monday to about $84 a barrel amid expectations of diplomatic progress toward ending the conflict, but prices remain well above pre-war levels Aol,CBS News. U.S. crude averaged about $92.45 from April through June CNBC, and Russian outlet Kommersant, citing The New York Times, reported second-quarter crude at $96 a barrel, 45% above the year-earlier period Коммерсант.…. Prices at times exceeded $100 a barrel during the war, and U.S. gasoline averaged as high as about $4.56 a gallon this spring NY Post.
How are the companies and consumers responding?
Chevron told employees in an internal email Monday it would award a special bonus equal to half of monthly base pay for most staff, citing cost-reduction targets and synergies from the Hess acquisition Investing.com. On the consumer side, a CBS News poll found about half of Americans said elevated fuel costs are causing them financial difficulty, and about eight in 10 said the administration is not focusing enough on lowering consumer prices Aol,CBS News.
What else could follow from the profit surge?
Democratic lawmakers are pushing a windfall profits tax on the oil sector, according to infobae infobae. Kommersant reported that Trump had earlier called on the U.S. Justice Department to examine oil companies over what he described as artificially inflated prices Коммерсант.…. It remains unclear whether the companies will lower retail prices in response to Trump's demand Yahoo! Finance.
Where Left and Right agree, and where they split
- Where Left and Right agree
- Both reads accept the same arithmetic: profits roughly quadrupled while pump prices went from about $3 to above $4, and the war-driven shortage is why.
- Where Left and Right split
- A transfer from households to shareholders that shouldn't depend on a presidential request, or ending the shipping disruption that set the price.
How left and right read it
Trump asked ExxonMobil and Chevron on Monday to give some of their haul back to the public and cut pump prices. Chevron's quarterly profit hit roughly $12 billion, up from about $2.5 billion; Exxon's reached $14.5 billion. Gas sits above $4, up from about $3. That gap is a transfer from households to shareholders. Why should relief depend on a request?
“The profits come at the expense of drivers struggling with gas prices averaging more than $4 for a gallon of regular.” — Washington Post
Chevron booked about $12 billion last quarter, up from roughly $2.5 billion, on higher oil prices after the Iran war disrupted shipping through the Strait of Hormuz. Scarcity prices carry information. Trump himself expects oil to fall once that conflict is resolved, and that is where the effort belongs — barrels and the war, not a public scolding over whether a CEO credited the administration on television.
“President Trump bristled Monday at Big Oil's huge windfall amid the war in Iran, arguing that the country's largest oil companies should give some of their record profits to the American public.” — New York Post
The receipts — 100 sources
Wire services (6)
Independent coverage (94)
The news, read by both sides.
The day’s biggest stories in one short brief, built to show both sides and the competing values behind the headlines. Free in your inbox.