Oil Majors Report $36 Billion Quarter as War Drives Prices to $113

Three of the largest oil companies in the world reported earnings that totaled just over $36 billion this quarter. The figures, released on investor calls this week, show a sharp rise in profits driven by geopolitical conflict and sustained demand for fuel.

ExxonMobil led the group with $15.4 billion in earnings, a figure that more than doubled its profit from the same period last year. Shell reported $10.8 billion, nearly doubling its previous total. Chevron saw its earnings jump 180 percent to reach $9.9 billion.

The primary driver of these numbers is the war in Iran, which has disrupted oil supply routes through the Middle East. As a result, Brent crude has risen from about $70 per barrel to roughly $113. Demand for gasoline, diesel, and heating oil has remained steady because households and industries still require these products for daily operations.

Dan Pickering, founder of Pickering Energy Partners, explained that companies are selling barrels produced in the U.S., Latin America, and Europe at much higher prices. He noted that the loss of Middle Eastern supply has become a financial gain for these western producers. The companies plan to return much of this money to shareholders through dividends and stock buybacks. Shell executed one of its largest buybacks ever, while Exxon announced its highest quarterly dividend to date.

Despite the cash flow, executives said they are holding back on major new spending. Pickering described the current moment as unusual and advised companies to keep cash in reserve as they move toward 2027. Oil is a cyclical industry, and firms prefer to save during high-price periods to protect against future drops.

For consumers, the rising costs are visible at the pump. AAA data shows gasoline is about $1.20 per gallon more expensive than a year ago. Diesel prices hit a record high in September and remain near that peak. Exxon CEO Darren Woods acknowledged the impact on people's lives, stating that his team is maximizing production to help keep prices down. Chevron CEO Mike Wirth added that the company is focused on giving consumers the most benefit from their systems.

Politicians are reacting to the windfall. Democrats in Congress have introduced bills to tax these excess profits, arguing they are a result of geopolitical events rather than innovation. Senator Sheldon Whitehouse, who sponsored a windfall tax bill, said the move aims to return money to Americans and highlight the growing cost competitiveness of renewable energy. Economist Isabella Weber of the University of Massachusetts Amherst described the situation as a contradiction where essential sector workers see record profits during a supply crisis. The Trump administration has also taken steps to lower fuel prices, such as loosening rules for dyed diesel and lifting sanctions on Russian diesel, though these measures are not expected to lower U.S. prices by Tuesday.

Shell CEO Wael Sawan admitted that he did not expect oil prices to reach current levels six months ago. He noted that global reserves are being drawn down quickly, and it will take time to refill them. This structural shift suggests that higher prices may persist for the near future.