US President Donald Trump on Monday scolded Chevron and Exxon for soaring profits in the second quarter, as oil prices have surged due to the Iran war.
“They’re making too much money based on a shortage,” Mr Trump told reporters at the White House.
US crude oil prices have risen by about 20 per cent since the US and Israel launched co-ordinated strikes against Iran on February 28, which led to the effective closure of the Strait of Hormuz by Tehran and an American blockade of Iranian ports.
Chevron on Friday reported earnings of $12 billion in the second quarter, compared to the $2.5 billion it reported the same time last year. ExxonMobil announced second-quarter earnings of $14.5 billion.
The two oil majors put their earnings towards reducing their debts rather than increasing share buy-backs.
“Chevron, too much money. ExxonMobil too much, too much money,” Mr Trump said.
“I don’t like it. I should be the last one to say because I’m a big free enterprise guy, nobody bigger. You surprised I’m saying it? I’ll say it loud and clear: I’m not happy about it.”
The US joined other International Energy Agency member nations in March to tap into strategic oil reserves to shore up the energy market due to the supply disruptions in the Middle East.
Data released on Monday showed US supplies of crude oil in the Strategic Petroleum Reserve fell by another 2.85 million barrels last week to 304.8 million barrels, its lowest level since 1983.
Prices for West Texas Intermediate, which tracks US crude, fell by 5.34 per cent on Monday to $80.15 a barrel on the latest hopes of talks between Washington and Tehran.
On average, US drivers are paying more than $4 a gallon (about $1 a litre) at the pump, according to automotive group the AAA. Higher petrol costs could push up price pressure for consumers elsewhere, while businesses could be forced to cut back on spending and hiring.
Mr Trump has sought to shift the blame of rising costs at the pump on to oil companies. In a Truth Social post last month, he said he had ordered the Justice Department to investigate oil companies for not lowering prices, accusing them of “gouging consumers”. He did not name any companies.
But Americans appear to be keeping the scrutiny on Mr Trump for rising petrol costs and other economic fallout from the Iran war.
Polling from Quinnipiac University last week showed 54 per cent of voters blamed Mr Trump “a lot” for the recent increase in petrol prices, while 19 per cent say he has “some” blame for it. Eleven per cent said he does not have much blame, while 15 per cent said “not at all”.
The same polling showed 59 per cent of voters believe the nation's economy is getting worse, while 19 per cent say it is getting better. Twenty-one per cent think it is about the same.
A separate CNN poll conducted by SSRS showed 74 per cent of respondents did not believe Mr Trump has a clear plan on handling the situation, compared to 67 per cent from a survey in March.
