Exxon, Chevron profits surge on oil rally

International oil prices averaged around $96 a barrel in the second quarter of 2026, about 45 percent higher than in the same period a year earlier. The jump reflected war-driven supply disruptions that tightened global markets and lifted benchmark crude, gasoline and diesel prices. These conditions significantly bolstered earnings for major integrated oil producers able to sustain output through the turmoil.

Exxon Mobil (XOM) reported that it earned $14.53 billion in the April through June period of 2026, more than twice as much as it did in the second quarter of 2025. Chevron’s (CVX) second-quarter profit climbed to $12.07 billion from $2.49 billion a year earlier, giving it its largest quarterly net income since 2022. Together, the figures highlight how heightened prices and constrained supply translated directly into higher profitability for the sector.

Chevron’s (CVX) second-quarter results outperformed analyst expectations as war-related supply disruptions pushed up prices across crude and refined products. The company reported adjusted earnings of $6.06 a share, surpassing the average estimate in a Bloomberg survey by $0.41. The outperformance underscored how Chevron’s portfolio benefited from the price environment and operational leverage during the quarter.

Exxon (XOM) characterized the three-month period as being shaped by extreme market conditions. The company’s chief financial officer, Neil Hansen, described the quarter as defined by "really unprecedented supply disruptions," linking its strong earnings to the dislocations in global supply chains. Despite the profit surge, Exxon shares fell roughly 3 percent in premarket trading following the release, while Chevron’s stock rose about 2 percent, indicating differing investor reactions to the respective results and outlooks.

Oil markets remained volatile around the end of July as geopolitical tensions persisted. On July 30, the price of Brent crude (UKOIL) fell 1.9 percent to $89.03 a barrel, a day after jumping nearly 8 percent. The swing followed renewed U.S. strikes and other developments that restored a geopolitical risk premium in crude prices, reflecting the market’s sensitivity to conflict-related news.

The combination of a high average price level in the second quarter and sharp short-term moves near month-end shows how war-driven disruptions continue to shape both spot pricing and expectations. While the quarter delivered substantial windfalls to Exxon and Chevron, the renewed volatility at the start of the third quarter signals that pricing conditions remain closely tied to the evolving conflict and associated supply risks.