Oil Refiners Rake in Record Profits as War Chokes Fuel Supplies

Oil Refiners Rake in Record Profits as War Chokes Fuel Supplies

Shell, TotalEnergies, and Pakistan's refineries post massive gains while oil giants refuse to build new plants.

· 2 min read ·
petrolmiddle easttrumpstock marketeurope

European oil majors Shell and TotalEnergies doubled their profits in the third quarter of 2026, posting their best quarterly results since 2022 as refining margins surged nearly four times higher than a year earlier [274991]. French energy company TotalEnergies reported a record net profit of $8.3 billion for July to September, up sharply from $5.4 billion in the previous three months, driven by war in the Middle East pushing up oil and gas prices [274178].

The windfall extends beyond Europe. Pakistan's oil refineries reported a combined profit increase of 1,860% — meaning profit grew more than 19 times its earlier level — in what has been described as a war windfall [276355]. Refineries turn crude oil into fuels such as petrol, diesel, and jet fuel, and their profits can rise sharply when fuel prices climb or when the gap between crude costs and fuel prices widens [276355].

The surge stems from supply disruptions. Ukraine and Iran have struck refineries in Russia and the Middle East, cutting refining capacity and driving diesel prices up [275783]. Chevron and ExxonMobil reached all-time high profits as global diesel prices surged from these attacks [275783]. Both Shell and TotalEnergies also expanded their share buyback programmes [274991].

Despite soaring fuel prices, major oil companies are rejecting calls to invest in new refineries. The decision comes as conflicts in the Middle East and Ukraine have sharply reduced global fuel production capacity, leaving profit margins for existing refineries significantly elevated [276343]. Critics argue that building new refineries could ease supply pressures and lower prices for consumers, but oil majors remain hesitant, pointing to long-term risks and costs of such projects [276343]. The standoff leaves drivers facing persistently high fuel costs with no clear relief in sight [276343].

The profit surge has drawn political attention. Donald Trump criticized major oil companies for making "too much money," and those same companies have since reported sharply rising refining earnings as fuel supplies tightened [275760].

Sources

Oil Giants Hit Record Profits as War Strikes Refineries #275783Shell and TotalEnergies Double Profits on Refining Boom #274991TotalEnergies Profit Soars to $8.3 Billion as Middle East War Lifts Oil and Gas Prices #274178Pakistan's Refineries Post 1,860% Profit Surge Amid War Windfall #276355Oil giants refuse to build refineries as fuel prices soar #276343Trump Blasts Big Oil for "Too Much Money"—Then Refining Profits Soar #275760

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