Overview
- Major oil companies reported outsized third-quarter earnings on Friday with combined adjusted net income for the biggest supermajors at about $56.3 billion, driven mainly by refining results.
- Rising refining margins — the price gap between crude oil and finished fuels like gasoline and diesel — soared because roughly 10% of global refining capacity has been knocked offline by the US‑Israel/Iran fighting and Russia‑Ukraine strikes.
- Refineries that stayed open ran near full rates, especially on the U.S. Gulf Coast, which let firms convert tight supply into record downstream profits and higher diesel and gasoline output.
- Companies are using the cash to raise dividends, expand buybacks and cut debt rather than broadly boosting investment, a move that has drawn public criticism and renewed calls for windfall taxes as consumers face high pump prices.
- Executives and analysts warn the supply squeeze and volatile margins are likely to persist for months to more than a year because repairs and normal trade flows will take time to restore.