Exxon and Chevron Profited From High Diesel. They Did Not Cut Pump Prices.

Chevron and ExxonMobil reported on Friday, October 30, that third-quarter profits surged as U.S. refineries ran hard into high diesel prices. Chevron’s net income rose to $9.9 billion from $3.5 billion a year earlier. Exxon’s profit doubled to $15.4 billion from $7.5 billion. Both companies beat adjusted earnings forecasts. Neither company announced a cut in retail gasoline or diesel prices.

Chevron said its U.S. refineries processed just over 1 million barrels a day at 98% of capacity, with diesel and jet-fuel yields up more than 10%. Its refining profit jumped to $4.9 billion from $1.1 billion. Exxon said Gulf Coast refineries ran at 100% utilization and recorded their second-highest diesel output there. Exxon’s refining profit of about $7.2 billion slightly exceeded earnings from its oil and gas production.

CNBC attributed the diesel surge to attacks on refineries in Russia and the Middle East. That is reported context for global supply, not a new U.S. pump-price measurement in the earnings release. Crude output did not boom: Chevron’s production slipped to 3.9 million barrels a day, partly because of the Middle East conflict, and Exxon’s output so far this year is below last year’s pace. The gain is refining margin, which can keep fuel costly for drivers and truckers while the companies earn more.

Did these profits mean U.S. gasoline or diesel got cheaper on Friday? No price cut was announced. The verified change is higher refinery output and much larger refining profits while diesel markets were already tight.