ExxonMobil and Chevron have defied calls from the White House to increase oil production, resisting pressure from an administration that is struggling to end the biggest energy crisis in decades , the Financial Times reported Friday.

Exxon's chief financial officer Neil Hansen said that there had been "no change" to the company's strategy in the Permian Basin, the dominant US oil and gas region, while Chevron's finance chief Eimear Bonner said "the crisis has not prompted any change to any of our plans" , according to the Financial Times. Bonner emphasized that "the crisis hasn't caused us to change any of our plans," explicitly noting that the market should not expect the company to significantly alter its established path just because of an eight-week supply disruption .

The standoff comes as U.S. crude oil futures fell 3% to close at $101.94 per barrel Friday, while international benchmark Brent lost nearly 2% to settle at $108.17 , CNBC reported. Pakistani officials confirmed to MS Now that mediators received an updated proposal from Iran to end the war , though "Iran wants to make a deal, but I'm not satisfied with it," Trump told reporters at the White House .

Oil Majors Prioritize Shareholder Returns Over Production Surge

Both Exxon and Chevron, whose chief executive Mike Wirth was among a group of executives who met Trump this week, said they were running their refineries at record rates, capitalising on the high price of diesel and other refined products , the Financial Times reported.

The oil group has the highest exposure to the crisis in the Middle East, with operations in the United Arab Emirates and Qatar accounting for 20 per cent of its oil production last year. Exxon in April warned that the conflict would cause a loss of 6 per cent of its global production in the first quarter , according to the Irish Times.

Despite production losses, ExxonMobil reported strong earnings. According to OilPrice.com, Exxon on Friday reported adjusted earnings excluding identified items of $4.9 billion, or $1.16 per share, compared with an analyst consensus estimate of $0.98 EPS in the Wall Street Journal . Chevron, which is less exposed, reported net income of $2.2 billion in the first quarter, a 37 per cent drop over the same period last year, but said it had $2.9 billion worth of paper losses. The company's production rose by 500,000 barrels a day compared with the first quarter of 2025 as a result of the integration of US oil and gas producer Hess .

The Iran war has slashed production across the Gulf and hit refining operations in the Middle East and beyond, triggering an energy shock that threatens to fuel inflation across the world. Oil prices on Thursday rose to $126 a barrel, the highest level since the start of the war, while US petrol prices have soared to more than $4 a gallon, undermining President Donald Trump's campaign pledge to bring them below $2 and make life cheaper for Americans. The government has released oil from the strategic petroleum reserve and called for more drilling from the industry, but the two US supermajors are holding firm on their pre-war strategies , the Irish Times reported.

UAE Exits OPEC as Iran War Reshapes Oil Alliance

In a major blow to the oil cartel, the United Arab Emirates said it will exit OPEC on May 1, and the UAE was the third-largest producer in OPEC behind Saudi Arabia and Iraq , CNBC reported Tuesday.

The United Arab Emirates has announced its decision to quit OPEC and OPEC+ to focus on "national interests", dealing a heavy blow to the oil-exporting groups at a time when the US-Israel war on Iran has caused a historic energy shock and rattled the global economy. The move, which will take effect on Friday, reflects "the UAE's long-term strategic and economic vision and evolving energy profile" , Al Jazeera reported.

The shock announcement Tuesday comes after the UAE was the target of missile and drone attacks for weeks by fellow OPEC member Iran. Tehran's attacks on shipping in the Strait of Hormuz has also severely constrained the UAE's ability to export oil, threatening the foundation of its economy , according to CNBC.

UAE Energy Minister Suhail Mohamed al-Mazrouei said the decision was taken after a careful look at the regional power's energy strategies. Asked whether the UAE consulted with OPEC heavyweight Saudi Arabia, he said the UAE did not raise the issue with any other country , Al Jazeera reported.

The energy research company Rystad Energy said the UAE's withdrawal marks a significant shift for the oil-producing group. "Losing a member with 4.8 million barrels per day of capacity, and the ambition to produce more, takes a real tool out of the group's hands," and "Saudi Arabia is now left doing more of the heavy lifting on price stability, and the market loses one of the few shock absorbers it had left" , according to Al Jazeera.

Iran Tensions Keep Markets on Edge

Benchmark Brent crude for June delivery reached as much as $126 a barrel in trading on Thursday, the highest intraday level since 2022 when Russia initiated the full-scale invasion of Ukraine, as Iran maintains its chokehold on the Strait of Hormuz. The price remained elevated, though slipped below $115 a barrel by early afternoon in Europe , Euronews reported.

Goldman Sachs estimates that exports through the Strait of Hormuz chokepoint have fallen to just 4% of normal levels, while stalled U.S.-Iran negotiations and a continued U.S. blockade tightening supplies , according to CNBC.

OilPrice.com reported that Oil prices could spike to $140 per barrel as the U.S. is keeping its blockade outside the Strait of Hormuz, Iran says and signals it won't open the chokepoint to free traffic and won't return to negotiations unless the American blockade is lifted .

A White House official said on Wednesday that US President Donald Trump had asked US oil companies about ways to mitigate the impact of a potentially months-long siege of Iranian ports. The president and the oil executives "discussed the steps President Trump has taken to alleviate global oil markets and steps we could take to continue the current blockade for months if needed and minimize impact on American consumers" , Al Jazeera reported.

Natural Gas Markets Soften Despite Oil Volatility

While oil prices surged, natural gas moved in the opposite direction. According to market data, Henry Hub Natural Gas traded at $3.25/MMBtu on Friday, down 2.4%.

Natural Gas Intel reported that Fresh off a 12-cent gain the prior session, prompt-month natural gas futures tried to move higher still in early Friday trading, even as weather models pointed to a mostly bearish two-week demand outlook .

Leadership Transition at Occidental Petroleum

In other major energy news, Occidental Petroleum said on Friday CEO Vicki Hollub, one of the most prominent women in the male-dominated oil industry, would retire next month, handing the reins to insider Richard Jackson , Reuters reported.

Vicki Hollub, CEO of Occidental Petroleum, plans to retire June 1, 2026, concluding over four decades with the organization. Richard Jackson, currently serving as Chief Operating Officer and with the company since 2003, has been appointed as the next CEO. In 2016, Hollub made history as the first female CEO of a major American oil corporation , according to multiple reports.

The company she will hand over is more focused on oil and gas production than the one she inherited, partly due to additional moves Hollub made, including the $12 billion purchase of shale producer CrownRock in 2024 and the $9.7 billion divestment of its chemicals business completed at the start of this year. Prior to becoming the top boss, Hollub led Occidental's Permian Basin operations, building the company into one of the biggest operators in the nation's largest U.S. oil region , Reuters reported.

The energy landscape continues to shift rapidly as geopolitical tensions, corporate strategy decisions, and market fundamentals collide. With oil prices hovering above $100 per barrel and no clear resolution to the Iran crisis in sight, energy markets face continued volatility in the weeks ahead.