Trump Criticizes Oil Giant for ‘Earning Too Much,’ Demands Partial Profit Return and Gas Price Reduction

August 4th. President Trump of the United States criticized ExxonMobil and Chevron for earning huge profits during the Iran war and stated that the two companies "earned too much." He suggested that they should return some of the profits to the public and reduce gasoline retail prices.

ExxonMobil and Chevron collectively earned $29 billion in the second quarter, averaging about $318 million per day, more than three times the same period last year. The crisis in the Strait of Hormuz led to an increase in oil prices, driving up refining profits for gasoline, diesel, and aviation fuel. The average U.S. gasoline retail price is currently about $4.10 per gallon, up over 30% from earlier this year before the U.S. and Israel's attack on Iran.

Trump stated that he supports the free enterprise system but cannot accept the current profit levels in the oil industry. He mentioned that if a company earns 12 times more than the previous year, it should return some of the profits to the public. He requested that oil companies proactively reduce consumer costs once the Iran war ends and energy prices fall. On Monday, Chevron's stock price fell by about 2%, and ExxonMobil fell by 0.6%.

Analysts stated that the U.S. strategic oil reserve has dropped to its lowest level since the early 1980s, and commercial crude inventories are also decreasing. Both the government and oil companies lack the tools to quickly lower oil prices. Reopening the Strait of Hormuz is key to restoring global supply and driving down oil prices.