US Oil Companies Poised For $63 Billion Profit Surge Amid Global Supply Crisis: Report

US oil producers are positioned to gain an additional $63 billion in profits this year as the ongoing conflict in the Gulf sends crude prices soaring past $100 per barrel.

Energy research firm Rystad Energy has calculated that if West Texas Intermediate crude averages $100 per barrel in 2026, American producers would secure windfall profits of $63.4 billion from their oil production operations.

The financial bonanza comes as the war between the United States, Israel and Iran has created what the International Energy Agency describes as the largest oil supply disruption in history.

Gulf countries have cut production by at least 10 million barrels per day as the Strait of Hormuz—through which roughly one-fifth of global oil normally flows—remains effectively closed due to Iranian attacks on vessels.

Brent crude closed above $100 per barrel for the first time since August 2022.

While American oil groups stand to benefit enormously from elevated prices, their Gulf counterparts face mounting losses.

Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Bahrain have reportedly lost an estimated $15.1 billion in energy revenues since the conflict began on 28 February, with Gulf producers unable to export crude as storage facilities fill up rapidly.

The market capitalisation values of ExxonMobil, Chevron and other American oil producers, refiners and exporters have surged to all-time highs this week.

However, American consumers are also feeling the impact, with national petrol prices rising 64 cents compared with a month ago, a 22 per cent increase, while California prices have exceeded $5 per gallon.

The IEA has announced that member countries would release 400 million barrels from emergency reserves to stabilise markets.

Please click here to add Swarajya as your preferred and trusted news source on Google