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Oil Majors Poised for Large Q2 Profits After Strait of Hormuz Disruption

Surging crude and trading gains from February's closure of the Strait of Hormuz have produced big cash inflows that are drawing a Justice Department probe.

Overview

  • Analysts and market reports show Exxon and Chevron are set to record sharply higher second-quarter profits driven by the crude price spike and trading gains during the market turmoil.
  • Shell on July 7 raised its Q2 integrated gas guidance to 610,000–650,000 boe/d while saying gas trading and optimization results will be significantly higher than in Q1.
  • Physical production was hit by attacks in the Gulf, with Shell’s Pearl GTL in Qatar remaining offline since March and Qatari LNG output reduced, lowering integrated gas volumes.
  • Shell forecast a $1 billion–$6 billion working-capital inflow for Q2 and raised indicative refining and chemicals margins, showing that price moves and trading, not just production, are driving cash flow.
  • President Trump has ordered a Justice Department price‑gouging probe and demanded immediate pump-price cuts, and markets are watching late‑July earnings for confirmation of trading and refining windfalls.