Donald Trump on Monday lambasted Chevron CEO Mike Wirth and other major oil companies, demanding they immediately lower consumer fuel prices. Trump's remarks followed Chevron's announcement of a record quarterly net profit of $12.1 billion. He specifically criticized Wirth for not acknowledging the role of the Trump administration in Chevron's strong performance, stating that without his "genius, foresight, strength, and stability," the oil industry and the country would be "DEAD!".
Trump highlighted Chevron's return to Venezuela as an example of his administration's impact, claiming the company was now "far bigger and stronger than ever before" and expecting to make a fortune after previously being "thrown out." He extended this expectation to other oil companies, urging them to get their "consumer (retail!) Oil Prices DOWN, NOW!". This constitutes a continuation of his campaign, which began in late June with a target of $2.50 per gallon and threats of a Department of Justice price-gouging investigation against companies like Chevron, ExxonMobil, Shell, and BP.
The former president's demands came on a day when oil prices experienced a significant drop. Brent crude, the international benchmark, fell 5% to $82.91 per barrel, down nearly 18% from its peak of $101 last month. West Texas Intermediate crude also slid below $80 a barrel, dropping as much as 8%. This decline was partly attributed to Trump's weekend announcement of calling off a planned strike on Iran and initiating new negotiations aimed at reopening the Strait of Hormuz, alongside weaker manufacturing data from China and the U.S., and OPEC+ plans to increase production quotas.
Despite the drop in crude prices, Trump maintained that retail gas prices had not fallen quickly enough for consumers. Chevron CEO Mike Wirth, in an interview, had acknowledged the company's strong performance but also cautioned about heightened risks to global oil shipments due to escalating tensions with Iran and Houthi strikes on Saudi energy infrastructure, noting that risks in the Strait of Hormuz, Red Sea, and Black Sea have expanded.
Economists, however, have disputed Trump's assertions that fuel prices would "come down like a rock" after conflicts with Iran, predicting longer-term economic repercussions. The stock market reacted positively to the decline in oil prices, with the S&P 500 rising 1.18% and the Nasdaq 100 gaining 1.79%, as lower energy costs eased inflation concerns and reduced pressure on the Federal Reserve to maintain higher interest rates.
