U.S. oil refiners post record margins as gasoline prices stay elevated

U.S. refiners are enjoying some of the strongest profit margins in years. Crack spreads for gasoline and diesel remain well above pre‑conflict levels despite a drop in crude prices, as demand for refined products outpaces supply. Refineries operate near‑maximum utilization, supported by strong export demand and limited global refining capacity, including reduced Russian output after attacks on its refineries.

The high margins are driving projected second‑quarter earnings for major companies such as Exxon Mobil and Chevron to be three times their first‑quarter levels, with analysts estimating about $15.9 billion and $9.9 billion in adjusted net income respectively. President Trump has urged lower retail gasoline prices, creating political pressure for the Biden administration, while the Justice Department reviews possible price‑gouging. Analysts say relief in consumer fuel prices will require broader improvements in refining capacity and inventories.