Why are fuel refining margins remaining high despite a nearly 30% drop in international crude prices?

Fuel refining margins remain high because disruptions to output and shipping in two war-affected regions—the Persian Gulf (due to the Iran conflict) and Russia (due to Ukrainian drone attacks crippling refining capacity)—have prevented lower crude input costs from flowing through to refined fuel prices; as CEO Eimear Bonner stated, 'the energy system is under stress' and 'product balances are tighter than crude,' leading to sustained margin strength.

What financial impact did Chevron's refining business have in the second quarter, and how does that compare to the prior quarter?

Chevron's refining business generated nearly $5 billion in profit in the second quarter, a dramatic turnaround from the prior three-month period when it lost money.

Chevron Says Big Fuel Margins to Persist Amid Energy 'Stress'

Jul 31, 2026

Chevron Corp. expects elevated fuel margins to persist amid energy stress from conflicts in Iran and Russia, despite falling crude prices. Refining profits reached nearly $5 billion in the second quarter as supply disruptions keep product balances tight.

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Chevron Says Big Fuel Margins to Persist Amid Energy 'Stress'

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