Chevron Falls 1.9% as Trump Demands Oil Price Cuts After Windfall Profits

President Donald Trump singled out Chevron CEO Mike Wirth on August 3, accusing the company of making too much money from rising oil prices and demanding immediate cuts to retail fuel prices. Chevron’s second-quarter earnings surged nearly 400% to $12 billion from $2.5 billion a year earlier, driven by crude prices that jumped 20% since the February 28 US-Israel attack on Iran. The stock fell 1.9% to $193.18 on the day as oil markets cooled on hopes of US-Iran negotiations.

Trump targets Chevron over record profits

Trump criticised Chevron on Monday for failing to acknowledge his administration’s role in restoring the company’s operations in Venezuela. In a Truth Social post, Trump wrote that without his administration, the oil industry would be “DEAD” and accused Wirth of “conveniently” omitting this fact during a television interview. Trump demanded all oil companies “get your consumer (retail!) Oil Prices DOWN, NOW,” warning of consequences for those who do not comply.

Q2 earnings soar on crude price surge

Chevron posted Q2 earnings of $12 billion, up from $2.5 billion in the same quarter last year. ExxonMobil also reported windfall profits, doubling to $14.5 billion from $7.1 billion year-over-year. US crude oil futures averaged $92 per barrel from April through June, roughly 27% higher than the first quarter, as Iran conflict disrupted global supply.

Pump prices lag crude decline despite market drop

National average petrol prices stood at $4.09 per gallon on Monday, down only modestly from recent highs despite crude falling more than 5% after Trump announced fresh Iran negotiations and cancelled a planned military strike. Brent crude fell to $82.91 per barrel, down 18% from last month’s $101 peak. Retail stations typically lag crude moves because they sell inventory purchased at earlier wholesale prices.

Stock pressure and political timing

Chevron shares fell 1.9% to $193.18 on August 3, while Meyka grades the stock B+ with a neutral recommendation based on a PE ratio of 29.49 and mixed fundamentals. Four analysts rate it a buy, one holds. Trump’s pressure on oil companies comes as November’s midterm elections approach and higher fuel costs threaten Republican control of Congress. This is Trump’s third public intervention on fuel prices in recent months, following calls for a Justice Department investigation in June and demands for $2.50-per-gallon pricing in July.

Final Thoughts

Chevron faces political pressure to cut prices despite record profits, but retail fuel lags crude moves by days. With the stock trading at 29.5x earnings and Meyka grading it B+, investors should watch whether Trump’s demands translate to margin pressure or remain rhetoric ahead of midterms.

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