U.S. shale producer Occidental Petroleum reported its highest quarterly profit since 2022, surpassing Wall Street expectations on Wednesday, helped by higher oil prices and production.
Benchmark Brent crude prices averaged 19.2% higher at $89.62 per barrel in the quarter from a year earlier as the conflict in the Middle East, now in its sixth month, disrupted energy supplies and shipping through the crucial Strait of Hormuz.
Occidental said it realized $96.78 for every barrel of oil produced in the three months ended June 30, compared to $63.76 a year earlier.
Average global production rose 2.4% to 1.43 million barrels of oil equivalent per day (mmboepd), driven primarily by strength in the U.S.
Output from Occidental’s international assets, located primarily in Algeria, Oman, Qatar, and the United Arab Emirates, dropped 12% to 205,000 boepd as repeated flare-ups and attacks on energy infrastructure in the Middle East kept a crucial oil-producing region on edge.
Larger U.S. rivals also posted solid second-quarter profits on the surge in oil prices. Chevron posted its highest profit in six years while ExxonMobil reported its biggest profit in four years.
The Houston, Texas-based company posted an adjusted profit of $2.40 per share for the April-June period, compared with expectations of $1.84, according to data compiled by LSEG.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Sriraj Kalluvila)