
U.S. refineries ramp up production to record levels as diesel prices surge due to global supply constraints.
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Global fuel supply is constrained due to attacks on refineries in Russia and the Middle East. U.S. refiners are filling the gap as diesel demand remains high.
Chevron and ExxonMobil on Friday reported profits that soared in the third quarter, as their U.S. refineries ramped up production to take advantage of high diesel fuel prices.
The world is facing a fuel crisis as Ukraine, Iran and Houthi militants attack refineries in Russia and the Middle East, reducing global capacity by millions of barrels per day. U.S. Gulf Coast refiners have ramped production to help fill the supply gap as diesel prices have surged.
ExxonMobil's profits doubled to $15.4 billion, or $3.72 a share, compared to $7.5 billion, or $1.76 a share, in the same period in 2025. When adjusted for one-time items, it posted earnings of $4.23 a share, soundly beating Wall Street's expectations.
"Refining capacity is very tight today," Exxon CEO Darren Woods told CNBC in an interview. "Frankly, diesel is the key crunch point here because it is so critical to economic growth [with] very inelastic demand."
U.S. diesel prices stood at a national average of $6.32 per gallon on Friday, an increase of more than 70% compared to the same period last year, according to AAA.
Chevron's net income surged nearly 200% to $9.9 billion, or $5.06 a share, compared to $3.5 billion, or $1.82 a share, in the same period last year. When adjusted for one-time items, it reported earnings of $5.28 per share, also beating the Street's expectations of $4.89.
"The system is under stress," Chevron CEO Mike Wirth told CNBC in an interview. "We remain in an environment that is fairly fragile."
Chevron shares are up nearly 2% while Exxon is more than 1% higher. Both touched all-time highs Friday.
Here's what Chevron and Exxon earned, compared with estimates from analysts polled by LSEG:
Chevron earnings per share: $5.28 adjusted, vs. $4.89 expected
Chevron revenue: $67.8 billion, vs. $61.6 billion expected
Exxon earnings per share: $4.23 adjusted, vs. $4.08 expected
Exxon revenue: $113.2 billion, vs. $103.1 billion expected
High profits from the largest oil companies at a time of war is politically controversial. President Donald Trump said in August that Chevron and Exxon "were making too much money based on a shortage."
Profits from Chevron's refining division surged more than 300% to $4.9 billion compared to $1.1 billion in the same period in 2025. Its oil and gas production generated earnings of $5.7 billion, up 70% from $3.3 billion in the year-ago period.
Chevron's U.S. refineries processed record amounts of crude oil at just above 1 million barrels per day, as the facilities ran at 98% capacity. Diesel and jet fuel yields rose more than 10%, Wirth said.
Exxon's refining division generated profits of about $7.2 billion in the quarter, outpacing its production business' earnings of about $7.1 billion. Its refining profits have surged nearly 200% to $11.4 billion so far this year compared to $4 billion during the first nine months of 2025.
Exxon's Gulf Coast refineries operated at 100% capacity utilization. Those refineries produced "record volumes of diesel" in the quarter, Woods said.
Chevron's oil and gas production actually declined slightly to 3.9 million barrels per day compared to about 4 million bpd in the same period last year. The decline was in its international segment due in part to the conflict in the Middle East, while output was largely flat in the U.S. year over year.
Exxon has produced about 4.5 million bpd this year, a more than 2% decline from nearly 4.7 million during the first nine months of 2025.

BP reported an $8.46bn quarterly profit, its highest since 2008, driven by increased oil refining margins and market volatility. The results have drawn sharp criticism from climate groups amid the ongoing cost-of-living crisis and high fuel prices.

Crude exports from the Gulf surpassed pre-war averages, reaching 24.6 million bpd in mid-October via workarounds like pipelines and ship-to-ship transfers. However, rising Brent crude prices, surging freight costs, and depleted global inventories reflect persistent war-related anxiety.

Oil prices fell Thursday as renewed Middle East peace talks eased supply fears. Brent dropped 1.73% to $113.32 and WTI slipped 2.06% to $100.66, while analysts weigh potential Federal Reserve responses to energy-driven inflation.

Shell reported a nearly doubled quarterly adjusted earnings of $10.8 billion, driven by record refining margins, high commodity prices, and global supply squeezes from ongoing conflicts.

Crude oil prices rose as reports suggest the U.S. may initiate military action against Iran post-midterms. Meanwhile, Israel faces a political stalemate following its election, adding further uncertainty to regional stability and energy markets.

Oil prices rose Wednesday following a Houthi ballistic missile attack on Saudi Arabia's Ras Tanura refinery. The incident heightened fears of a prolonged Middle East conflict, while political uncertainty in Israel and comments from Trump added to investor anxiety.