Exxon, Chevron Succumb to Oil-Refining Slump as Tariffs Loom

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Profits for Exxon Mobil Corp. and Chevron Corp were slammed by slumping fuel margins as the prospect of U.S. tariffs on two major oil suppliers threatens to make the refining business even worse.

Exxon posted a 67% plunge in 2024 refining profits on Jan. 31, and Chevron disclosed an even larger decline of 72%. The biggest North American oil companies succumbed to the same forces slashing results for fuel producers around the world — a flood of new output amid stagnating demand.

Those lackluster performances in a key business line come as U.S. President Donald Trump ramps up threats to lay steep tariffs on Canada and Mexico, both of which are crucial sources of crude for U.S.-based refineries. Such levies — which Trump said may take effect as soon as the weekend — would increase the cost of making everything from gasoline and diesel to jet fuel.

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