Big Oil companies’ refining earnings have surged as tight fuel supplies and higher margins for turning crude oil into gasoline, diesel and jet fuel boosted results. Shell, BP, TotalEnergies and ExxonMobil reported sharply higher refining margins, while Chevron’s downstream earnings more than quadrupled year over year to $4.9 billion. Ukrainian drone attacks on Russian refineries and disruptions to Middle Eastern energy infrastructure and supply chains have constrained global refining capacity as the oil majors run their facilities near maximum output. Higher crude oil prices also supported the profits of integrated companies, bringing earnings back toward levels last seen during the 2022 energy shock. Wood Mackenzie said the physical shortage of refined products could persist well into 2027, even though a settlement in the Strait of Hormuz would quickly weigh on margins.
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