Stephen Schork, in response to Donald Trump's calls for oil companies to cut gas prices, asserts that refiners are currently unable to deliver the requested relief. Trump has expressed dissatisfaction with major oil companies like ExxonMobil and Chevron, which have reported significant profits. For instance, ExxonMobil earned $14.5 billion in the second quarter of 2026, double its profit from the previous year, while Chevron reported a record $12.2 billion profit. These substantial earnings are partly attributed to the tight refining markets and strong margins on refined products, not just crude oil production.
The high refining profits are driven by a combination of factors, including war-driven disruptions and a constrained supply of refined gasoline and diesel. Chevron's refining profit, for example, surged to about $4.9 billion from $737 million a year earlier, and Exxon's refining business made about $5.5 billion, compared to a $1.3 billion loss in the first quarter. Experts like Patrick De Haan of GasBuddy note that crude oil is the primary factor in gas prices, accounting for 51% of the cost, and its price is determined by a global market beyond the control of any single U.S. company. The market shock has increasingly moved downstream, affecting refined petroleum products.
Trump's demand for gas prices around $2.25 per gallon, compared to the national average of $4.10-$4.11, is deemed unrealistic by experts. Bob McNally, president of Rapidan Energy Group, highlights that the oil business is cyclical, and current high profits reflect a period of elevated crude and refined product prices. The Justice Department and Federal Trade Commission are monitoring the market for potential antitrust violations, but the fundamental issue remains a global supply constraint. Ron Buso, an energy analyst, points out that the improvement in operating conditions for refiners is conflict-driven, not a sustained fundamental improvement, and that repairing damaged refineries in the Middle East and Russia will take months or even years. Global oil inventories continue to shrink, with OECD commercial oil stocks 142 million barrels below the five-year average in June, further sustaining demand and limiting the ability of refiners to significantly lower prices.
