US oil giants Exxon and Chevron are poised to reap $100 billion total profit bonanza from Russia's war on Ukraine
- ExxonMobil and Chevron are both set for record profits in 2022, of $56 billion and $37 billion respectively, per the FT.
- The US energy giants are benefiting from the surge in global oil prices after Russia invaded Ukraine, it said.
US oil giants ExxonMobil and Chevron are expected to earn nearly $100 billion in total profits from 2022, thanks to Russia's war with Ukraine.
Exxon is projected to rake in more than $56 billion while Chevron may reach $37 billion, per the Financial Times, citing data from S&P Capital IQ. For both the companies, annual earnings are seen hitting record highs.
The profit boon comes after global oil prices soared in response to Russia's invasion of Ukraine, which squeezed supply in energy markets. While Brent crude was trading around $86 a barrel at last check Tuesday, the European benchmark surged toward $140 last March.
The jump in earnings signals a sharp reversal of fortunes for energy companies, which saw their income plunge as demand collapsed during the COVID-19 pandemic. It's also seen as vindication for combatting climate change calls.
Such super-sized profits however have drawn criticism from US President Joe Biden. He has slammed Exxon for "making more money than God," while American drivers pay record fuel costs at the pump, and urged energy companies to cut down their prices.
Meanwhile, Biden's advisor Amos Hochstein told CNBC last year that US energy companies need to invest their profits to boost supply over time and prevent prices from surging in the future.
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