Massive Oil Is Pumping A Ton Of Crude, However Is not Seeing A Ton Of Earnings

It is Friday and I am in love…with the information that’s! it is August 1, 2025, and that is The Morning Shift, your each day roundup of the highest automotive headlines from around the globe, in a single place. That is the place you may discover a very powerful tales which might be shaping the way in which Individuals drive and get round.

On this morning version, Massive Oil does method higher than anticipated in Q2, America’s closest buying and selling companions nonetheless on the hook for tariffs however discover some slight respiration room with regards to vehicles, Hyundai grows within the U.S. however faces robust headwinds, and Mercedes paused EV orders within the U.S. 

Massive oil is producing quite a lot of the stuff, however that does not imply it is making a ton of cash. Power markets are bizarre and sophisticated. Exxon Mobil and Chevron noticed shares rise Friday morning on the information that elevated manufacturing took a few of the sting out of decrease power costs. Exxon produced extra dino go juice in Q2 of 2025 than it has because it was acquired by Mobil in 2000–round 4.6 million barrels a day–whereas Chevron noticed an nearly 4 million barrels a day excessive mark, in line with Bloomberg. Producing all this oil did not assist a lot with income, however no less than these numbers are higher than what Wall Avenue anticipated to occur. 

Exxon, for example, made $9.24 billion within the second quarter of 2024, whereas this 12 months it solely hit $7.08 billion. Oh will not somebody please consider the kids of those oil firm execs! How are they suppose to place meals on the desk with oil buying and selling at or beneath $70 a barrel? Particularly, they will most likely blame OPEC, which elevated its manufacturing, and President Trump, who has turned the free market world the other way up along with his wildly unpredictable tariff swings. Whereas making more cash than Wall Avenue predicted is an efficient factor for shareholder, the businesses are holding on to these good instances by the pores and skin of their tooth. From Bloomberg: 

Regardless of the upbeat earnings, Chevron sees the potential for decrease oil costs later this 12 months as provide will increase from OPEC and its allies saturate world crude markets.

“With these dynamics, we most likely see some value strain within the second half of the 12 months,” Chief Monetary Officer Eimear Bonner stated in an interview. “We’re positioned for all value environments so if we see the softening, if it does actually play out, we’re in a great spot.”

Exxon has now reduce $13.5 billion of annual prices over the previous six years, which it says is greater than all its Massive Oil rivals mixed. The corporate has offered belongings, reduce jobs and centralized inner capabilities like engineering. It expects to cut back annual bills by an extra $4.5 billion by 2030.

Whereas the second half of 2025 would possibly present a good squishier surroundings for income, Massive Oil nonetheless has the lengthy, sluggish, unhappy decline of EVs within the U.S. to look ahead to. In fact, different components might enhance the price of oil as effectively. We noticed the potential for a short spike when Trump threatened after which bombed Iran. There’s all the time room for hope, I suppose.

You’d assume America would wish to work intently with its largest buying and selling companions to the north and south of us, however what assuming does! Canada acquired slammed with a 35% tariff beginning August 1. Nevertheless, items included within the United States-Mexico-Canada Settlement, which Trump himself put into place throughout his first time period, will not be hit with the tax, leaving auto components assembled in Canada comparatively untouched. However a 25% world levy on all vehicles coming into the U.S. remains to be inflicting turmoil in Canada’s auto sector. 

Trump’s White Home says the excessive tariff on Canada is because of the nation’s unwillingness to stem a circulate of fentanyl and different unlawful medicine into the U.S. In fact, Canada solely makes up 0.2% of all fentanyl border seizures coming within the U.S., however that quantity is completely value destroying commerce relations with our largest buying and selling accomplice, neighbor, and historic buddy to the U.S. From Automotive Information: 

Canadian Prime Minister Mark Carney stated the transfer was disappointing, however that Ottawa stays dedicated to the USMCA, in addition to diversifying the nation’s buying and selling companions.

“The U.S. utility of CUSMA signifies that the U.S. common tariff price on Canadian items stays one of many lowest for all of its buying and selling companions. Different sectors of our financial system — together with lumber, metal, aluminum, and cars — are, nevertheless, closely impacted,” he stated in an announcement.

Carney stated the Canadian authorities continues to strengthen its border with the USA, however that fentanyl seizures account for just one per cent of illicit U.S. imports.

Mexico is faring a little bit higher. Our mates on the southern border are getting a 90-day reprieve on a tariff hike, sticking with the 25% levied on Mexican items as a substitute of elevating the speed to 30%, in line with Bloomberg. Items coved by the USCMA are additionally protected, however Mexico can also be struggling underneath the worldwide 25% automotive tariff and large tariffs on uncooked supplies. This pause naturally comes at some point after Trump declared there could be no pause on tariffs. 

All of this makes probably the most sense, in fact. Free commerce made the U.S. the richest and strongest nation on the planet, so it’s undoubtedly time for an abrupt about-face. 

We love a great Korean automotive, do not we people? Individuals definitely do, as Hyundai noticed gross sales within the U.S. bounce an astonishing 15% and Kia noticed a 12% rise in gross sales. Genesis noticed a extra modest, however nonetheless extraordinarily agency 8% in gross sales development. Automotive Information theorizes this rise in gross sales is because of prospects making an attempt to get their automotive purchases made earlier than tariffs hit the automaker, which makes most of its vehicles in its mega plant in Ulsan, South Korea. That development will not maintain, Cox Automotive Senior Economist Charlie Chesbrough informed Automotive Information:

“We’re seeing extra tariffed merchandise changing current stock, and prices are trending larger,” Chesbrough stated. “As these larger prices trickle by means of to retail, gross sales will probably soften within the coming months except the financial path improves.”

David Hult, CEO of Asbury Automotive Group Inc., stated gross sales had been sluggish for a lot of the first two weeks of July, “however then it is progressively picked up the second half of the month.”

South Korea acquired a last-minute tariff deal of 15% on items coming into the U.S. plus a $350 billion funding from Korea which can be parted out by President Trump himself, in line with a Fact Social publish made by the president. At the very least $150 billion will go to shipbuilding cooperation and the remaining will go in direction of semiconductors, secondary batteries, and some different investments, CNN reviews. Hyundai is contemplating a value hike on all of its merchandise within the U.S. by no less than 1%, extra for components coming from the nation. 

Are the nice instances over for the Korean automaker? I hope not. A few of the most fascinating vehicles on the earth come from the peninsula, it could be a disgrace to see vehicles just like the Genesis G90 or the much-loved Hyundai Ioniq line disappear. 

Up to date Friday, August 1, 2025 5;05 p.m.: Mercedes has clarified with Jalopnik that the EQS and EQE there can be no pause in accepting orders for the electrical EQE SUV or the EQS sedan. 

Had been you considering of ordering your self a brand new Mercedes-Benz electrical automobile? Perhaps the EQS sedan and EQE SUV? Sorry sucker, you waited a little bit too lengthy, as Mercedes paused orders for the EVs within the U.S. this week. The corporate did inform Automotive Information it could reopen orders by August 1 (that is right now, for you eagle-eyed calendar heads) nevertheless it will get worse; by September 1, Mercedes is pausing manufacturing of the EVs at its Vance, Alabama plant after dropping output 55% within the second half of final 12 months. Mercedes builds 60 EVs a day on the plant with 50 of these autos slated for abroad markets. These vehicles keep away from tariffs because of a commerce deal between the EU and the US, nevertheless it’s nonetheless not sufficient to maintain the plant pumping out vehicles, from Automotive Information: 

Mercedes has struggled to search out traction with EVs within the U.S. The model’s EQ fashions have been derided for his or her bulbous designs and premium sticker costs.

In line with Automotive Information Analysis & Information Middle estimates, wholesale shipments of the EQS SUV declined 32 p.c within the first half of this 12 months to 2,318. Deliveries of the EQE crossover tumbled 35 p.c to 4,676.

Mercedes has resorted to steep reductions to maneuver its electrical fashions.

Promoting an SUV within the U.S. needs to be simpler than capturing fish in a barrel, however the EQ fashions usually are not anybody’s favourite. Now, with the lack of the $7,500 EV tax credit score, these pricy EVs are even much less enticing. Fortunately for people in Vance, the plant produces extra than simply EVs, with the better-selling GLE, GLS, and GLE Coupe making up its roster.

If I might flip again time… if I might discover a method…

A brand new Chappell Roan single? We’re consuming effectively right now people!