*** TOO GOOD TO LAST ***** Reuters says oil majors are reaping near-record profits from the eight-month war in Iran, but the reluctance of Western energy producers to increase spending points to lingering doubts about the industry's long-term prospects. BP, Chevron, Exxon Mobil, Shell and TotalEnergies reported a combined net income of $56 billion in the third quarter, driven by rising oil and gas prices, record refining margins and strong trading results. Market conditions remain remarkably favorable. Since the start of the conflict in Iran on February 28, Brent crude oil has risen about 60% to $114 a barrel, and natural gas prices in Europe have reached their highest levels since late 2022. However, the oil majors have so far refrained from making major new investments, suggesting that they do not see today's market conditions as evidence of an improvement in the industry's long-term prospects. At the start of the year, the energy industry braced for an impending supply glut. Many companies have cut costs, suspended hiring and stepped up cost-cutting plans, expecting prices to rise later in the decade due to increased supplies of oil and liquefied natural gas (LNG). Joint US and Israeli strikes on Iran in February and the prolonged closure of the Strait of Hormuz have disrupted the short-term supply picture, as exports from the Gulf countries have all but dried up and refining capacity has been cut. However, the energy companies have so far taken a conservative approach, using excess cash mainly to strengthen the balance sheet and buy back shares. The combined net debt to large companies fell to $117 billion in the third quarter, compared to $204 billion in the first quarter.

*** TOO GOOD TO LAST ***** Reuters says oil majors are reaping near-record profits from the eight-month war in Iran, but the reluctance of Western energy producers to increase spending points to lingering doubts about the industry's long-term prospects. BP, Chevron, Exxon Mobil, Shell and TotalEnergies reported a combined net income of $56 billion in the third quarter, driven by rising oil and gas prices, record refining margins and strong trading results. Market conditions remain remarkably favorable. Since the start of the conflict in Iran on February 28, Brent crude oil has risen about 60% to $114 a barrel, and natural gas prices in Europe have reached their highest levels since late 2022. However, the oil majors have so far refrained from making major new investments, suggesting that they do not see today's market conditions as evidence of an improvement in the industry's long-term prospects. At the start of the year, the energy industry braced for an impending supply glut. Many companies have cut costs, suspended hiring and stepped up cost-cutting plans, expecting prices to rise later in the decade due to increased supplies of oil and liquefied natural gas (LNG). Joint US and Israeli strikes on Iran in February and the prolonged closure of the Strait of Hormuz have disrupted the short-term supply picture, as exports from the Gulf countries have all but dried up and refining capacity has been cut. However, the energy companies have so far taken a conservative approach, using excess cash mainly to strengthen the balance sheet and buy back shares. The combined net debt to large companies fell to $117 billion in the third quarter, compared to $204 billion in the first quarter.