news

president donald trump previously criticized major oil companies for making what he described as too much money while consumers faced pressure from rising fuel prices

however, recent financial results show that some of the world's largest oil companies are benefiting significantly from tight supplies of refined fuels and higher refining margins

shell, bp, totalenergies and exxonmobil have all reported stronger performance in their refined-products businesses

chevron has also reported a major increase in its downstream earnings, which more than quadrupled year over year to approximately $4.9 billion in the third quarter of 2026

these earnings highlight how profitable the refining business can become when supplies are limited and demand remains strong

why are oil companies making more money?

one of the biggest reasons is the global shortage of refined fuels such as diesel, gasoline and jet fuel

several factors have contributed to the situation

ukrainian drone attacks have disrupted russian refinery operations, while the ongoing conflict involving iran has created additional uncertainty around middle eastern energy supplies

attacks on energy infrastructure and shipping routes have also added pressure to an already tight market

another important factor is the reduction in refining capacity

a significant number of refineries across europe and north america have closed over the past two decades, making it harder for the industry to respond quickly when supply disruptions occur

even when existing refineries operate close to full capacity, they cannot always produce enough fuel to meet global demand

the difference between oil prices and refining profits

something i find important here is that higher oil prices do not automatically mean every oil company benefits equally

companies involved in both oil production and refining can earn money from different parts of the energy business

when refining margins increase, companies can earn more from turning crude oil into finished products such as diesel and gasoline

this is particularly beneficial when refined fuel supplies become tight

however, consumers experience the other side of the situation through higher fuel prices and increased transportation costs

could the situation continue into 2027?

the global fuel shortage may not disappear quickly

some energy analysts believe that even if geopolitical tensions ease, limited inventories and disrupted supply chains could keep pressure on refining margins

a meaningful improvement would likely require more crude oil reaching refineries, damaged or disrupted facilities returning to operation, and russian fuel exports recovering

a settlement involving the strait of hormuz could also improve market sentiment, although physical supply shortages may take longer to resolve

my take

what stands out to me is the difference between the profits being reported by major oil companies and the pressure consumers are facing

when fuel supplies become tight, refining companies can benefit from higher margins, but ordinary people are left dealing with expensive petrol, diesel and transportation

i also think this situation shows how much the global energy market depends on geopolitics

a conflict thousands of kilometres away can affect refinery operations, shipping routes, fuel availability and eventually the prices people pay at the pump

trump's criticism of big oil raises another interesting question: should energy companies be expected to do more when consumers are struggling with higher fuel prices, especially when those companies are benefiting from the same supply shortages?

my final thoughts

the rise in refining earnings is not happening in isolation

geopolitical conflicts, refinery closures and limited fuel supplies are all contributing to a market where some major energy companies are generating significantly higher downstream profits

if these disruptions continue, refining margins could remain elevated into 2027

but if supply improves and geopolitical tensions ease, the current profit boom could eventually lose momentum

what do you think?

are oil companies simply benefiting from market conditions, or should governments put more pressure on big oil when fuel prices rise and consumers struggle?

disclaimer: this article is for informational purposes only and is not financial advice. always do your own research before making investment decisions.