Oil Paradox: Giants' record profits as fuel prices soar for consumers

European and US oil giants are reporting record profits for the second quarter, driven by a surge in oil prices exacerbated by the conflict in the Middle East. Meanwhile, consumers and professionals are grappling with significantly higher prices for diesel and unleaded gasoline.

Brent crude oil prices averaged around $97 per barrel in the second quarter, a notable increase from $78 in the first quarter and $67 a year earlier. European natural gas prices also rose to 46 euros per megawatt-hour from 40 euros in the previous quarter and 36 euros a year ago.

BP announced a 144% increase in its adjusted second-quarter earnings, reaching $5.7 billion, surpassing analyst expectations. This marks the highest quarterly profit for BP since 2022, a period that saw an energy crisis following the war in Ukraine. Shell's net profits more than doubled compared to last year, reaching $9.84 billion in the second quarter. This increase was attributed to higher energy prices and market volatility stemming from the Middle East conflict.

Shell's refineries operated at 102% of their nominal capacity to capitalize on high fuel prices, boosting jet fuel production by a fifth year-on-year. These second-quarter earnings were the second-highest ever recorded by Shell, surpassed only by the second quarter of 2022. ExxonMobil reported its largest quarterly profits in four years, with adjusted earnings increasing by 67% from the first quarter to $14.7 billion. Chevron announced its highest quarterly profits in at least six years, with adjusted earnings of $12 billion, exceeding analyst expectations.