Overview
- Major Western oil companies reported blockbuster third-quarter earnings on Friday that together totaled about US$56.3 billion, driven largely by record refining margins and trading gains.
- Companies said the profit surge reflects supply squeezes caused by the US‑Israel/Iran war that closed the Strait of Hormuz and by strikes related to the Russia‑Ukraine conflict that knocked out refining capacity.
- Firms are directing the cash into shareholder returns and balance-sheet fixes, with Shell increasing its buyback, Exxon announcing a $20 billion 2027 repurchase plan, and several majors accelerating debt paydown or raising dividends.
- Campaign groups and some politicians have called for windfall levies as consumers face higher fuel bills, while President Donald Trump has publicly framed the gains as benefits to the U.S. energy sector.
- Company guidance and market commentary say refining margins could stay elevated into the fourth quarter because supply limits persist, keeping pressure on pump prices and political scrutiny through the midterms.