U.S. oil companies to get $5 billion in extra profits in March because of Iran war
The United States could be one of the biggest beneficiaries of the world’s energy prices rising amid conflict in the Middle East, writes RBC with reference to the Financial Times (FT).
This will be possible if the average oil price this year will be $100 per barrel, which will bring significant profits to U.S. producers, explains FT. In this case, the annual profit of American oil companies from oil production could reach $63.4 billion, according to the research company Rystad.
According to the assessment of the investment bank Jefferies, which is cited by the publication, in March alone, U.S. oil companies will receive an additional income of $5 billion.
As RBC specifies, rising oil prices put pressure on the U.S. economy, as prices for gasoline and diesel fuel, as well as for many goods and services have increased in the country. However, unlike the oil crises of the past years, in this case the U.S. itself is a major oil producer, which provides the economy with protection from the worst consequences, the publication refers to the analyst of The Wall Street Journal (WSJ).
Among the biggest beneficiaries WSJ names such American states as Texas, New Mexico and Alaska: they will be able to reduce the burden of the budget deficit, allocate additional funds for preschool education and roads.
However, the situation is not so clear-cut, notes FT, citing which RBC explains that American companies that produce shale oil, in this sense, may remain in a bigger plus, since their activities in the Middle East are limited.
But the situation is more complicated for large international companies: the US ExxonMobil and Chevron, as well as their European competitors BP, Shell and TotalEnergies, have extensive assets in the Persian Gulf countries and are more affected by the closure of shipping through the Strait of Hormuz.
