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Oil giants report blowout profits on war, warn high gas prices could persist
['Paul A Reid Observer Writer Reidp Jamaicaobserver.Com']
- Jamaica Observer
NEW YORK, United States (AFP) — US petroleum giants ExxonMobil and Chevron released blowout profits Friday due to the Middle East war, as executives cautioned that elevated gasoline prices will probably continue to strain consumers.
But gasoline prices sit above the psychologically important $4 per gallon level, posing political risk to US President Donald Trump ahead of the US midterm elections.
– Windfall profits tax –With revenues of $116 billion, up 42 per cent, ExxonMobil pointed to higher oil prices as a factor in its earnings, while emphasising huge increases in refining margins.
The strong results from US oil giants come on the heels of massive profit increases at Shell and TotalEnergies that have prompted calls in some European countries to impose windfall profits taxes.
Results were also dented by reduced international refining runs because of a 10 percent drop in crude oil inputs.