Any relief at U.S. gas stations is likely to arrive slowly, Chevron said, even as easing tensions in the Middle East point to lower fuel costs ahead.
As CNBC reported, that outlook surfaced as President Donald Trump moved to launch a federal investigation into whether major oil companies are keeping gasoline prices artificially high.
What happened?
Last week's interim peace deal between the U.S. and Iran has helped steady oil markets, a shift that Chevron chief financial officer Eimear Bonner said should translate into lower U.S. gas prices, per CNBC.
During an appearance on CNBC's "Squawk Box Europe," Bonner said consumers typically do not see lower crude prices reflected immediately at service stations.
"It's going to take time, though," Bonner explained. "There is a lag between, you know, oil prices and reductions in oil prices and when that shows up at the pump."
The Justice Department inquiry followed Trump's claim that gasoline prices "should be much lower at the pump," as CNBC reported. The president said Chevron, Exxon Mobil, Shell, and BP should be investigated "immediately" for possible price gouging, per the outlet.
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Brent for August was down 1.3% to $72.75 a barrel last Thursday, while West Texas Intermediate fell 1.1% to $69.60, near where oil traded before the late-February outbreak of the Iran war.
Why does it matter?
Even small changes in gas prices can affect household budgets. Lower fuel costs can ease pressure on commuters, trim delivery expenses, and help lower the cost of goods transported by truck.
Oil price swings can ripple quickly through the economy, leaving consumers vulnerable to conflict and market volatility far beyond their control.
The fossil fuel industry also affects communities in ways that extend well beyond pump prices. Coal and natural gas power plants contribute to air and water pollution.
Industry lobbying has also slowed the rollout of cleaner and more affordable energy alternatives.
Delays to renewables, energy storage, and electrification can keep consumers tied to systems that are both more polluting and more expensive.
What's being done?
Trump ordered a Justice Department review in a bid to force movement from oil companies like Chevron.
"The price of fuel is not only [a] national security issue, it impacts the wallet of every American," a DOJ spokesperson wrote to CNBC in an email. "We will always commit to ensuring affordability in this nation."
Chevron said, in comments to the outlet, that part of its response is to increase supply. Bonner told CNBC the company expects to grow production by 7% to 10% this year and that it has been using "the levers that we have to deliver the energy the world needs and to deliver products to consumers."
Given the high prices consumers face at the pump, many might counter that talk is cheap.
"There is a lot of empathy, whether it's in the U.S. or here in the U.K. or in Europe, for consumers," Bonner told CNBC in her appearance.
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