Phillips 66 Faces Challenges Amid Middle East Oil Disruptions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
Should l Buy PSX?
Source: CNBC
Phillips 66 shares fell 4.48% and hit a 20-day low, reflecting concerns over the ongoing disruptions in the Middle East oil supply chain.
CEO Mark Lashier highlighted that these disruptions will have long-lasting effects on the global energy system, necessitating significant logistical shifts as Asian buyers seek crude from North America. Despite a recent surge of nearly 70% in the past year, the stock has faced volatility, slipping 8% over the last month, indicating a disconnect between long-term confidence and short-term challenges.
The implications of these disruptions could lead to a reevaluation of energy supply chains and pricing strategies, as the market adjusts to the new realities of oil availability and demand.
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Analyst Views on PSX
Wall Street analysts forecast PSX stock price to fall
15 Analyst Rating
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 155.750
Low
110.00
Averages
132.40
High
162.00
Current: 155.750
Low
110.00
Averages
132.40
High
162.00
About PSX
Phillips 66 is a diversified and integrated downstream energy provider that manufactures, transports and markets products. The Company's Midstream segment provides crude oil and refined petroleum product transportation, terminating and processing services, as well as natural gas and natural gas liquids (NGL) transportation, storage, fractionation, gathering, processing and marketing services. Its Chemicals segment consists of its 50% equity investment in Chevron Phillips Chemical Company LLC, which manufactures and markets petrochemicals and plastics on a worldwide basis. Its Refining segment refines crude oil and other feedstocks into petroleum products, such as gasoline, distillates, including aviation fuels. Its Marketing and Specialties segment purchases for resale and markets refined products, mainly in the United States and Europe. Its Renewable Fuels segment processes renewable feedstocks into renewable products at the Rodeo Renewable Energy Complex and at its Humber Refinery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Surging Diesel Prices Boost Refiners' Profits
- Diesel Price Surge: Diesel prices have skyrocketed from $3.365 per gallon in January to $5.382, a 59% increase, significantly benefiting independent refiners like Valero and Phillips 66, reflecting strong market demand and supply constraints.
- Valero's Strong Financials: Valero's stock has risen 39% this year and over 105% in the past year, with adjusted net income per share reaching $10.61 in 2025, a 25% increase, demonstrating the company's profitability and competitive edge in a high diesel price environment.
- Phillips 66 Diversification Strategy: Phillips 66 has successfully transformed into a midstream-focused company through acquisitions like DCP Midstream and EPIC NGL, providing more stable cash flow, with adjusted EPS of $6.44 in 2025, up 4.7%, indicating financial robustness.
- Renewable Energy Investment Outlook: Both companies are investing in renewable fuels, with Valero being the largest renewable diesel producer in North America and Phillips 66 converting its San Francisco refinery into a renewable diesel and sustainable aviation fuel facility, signaling their leadership in the energy transition.
See More
Valero Energy and Phillips 66 Shares Surge Amid Diesel Price Spike
- Diesel Price Surge: Diesel prices have skyrocketed from $3.365 to $5.382 per gallon in just weeks, a 59% increase that benefits independent refiners like Valero and Phillips 66, further driving their stock prices upward.
- Valero's Strong Performance: Valero reported an adjusted EPS of $10.61 for 2025, a 25% increase year-over-year, with refinery utilization rates exceeding 96%, significantly above industry averages, showcasing its competitive edge in the market.
- Phillips 66's Diversified Revenue: By acquiring DCP Midstream and EPIC NGL, Phillips 66 has successfully transformed its business model, establishing a more stable natural gas liquids operation that is expected to provide steady cash flow and enhance its risk resilience.
- Dividend Growth and Buybacks: Both Valero and Phillips 66 have increased their dividends by 100% and 101% over the past decade, respectively, and are actively repurchasing shares, which boosts investor confidence and shareholder returns.
See More
Diesel Prices Surge, Refiners Stand to Gain
- Diesel Price Surge: Diesel prices have skyrocketed from $3.365 to $5.382 per gallon in just weeks, a 59% increase that benefits refiners like Valero Energy and Phillips 66 through higher crack spreads, enhancing their profitability.
- Valero's Strong Financials: Valero's stock has risen 39% this year and over 105% in the past year, with an adjusted EPS of $10.61 for 2025, reflecting a 25% increase, indicating robust financial health even before the diesel price surge.
- Phillips 66 Diversification Strategy: Phillips 66 has successfully transitioned into midstream operations through acquisitions like DCP Midstream and EPIC NGL, providing more stable cash flow, and has converted its San Francisco refinery into a major renewable diesel and sustainable aviation fuel facility, positioning itself as a leader in the energy transition.
- Consistent Shareholder Returns: Both Valero and Phillips 66 have increased dividends over the past decade, with Valero raising its dividend by 6.2% to $1.20 per quarter and Phillips 66 by 5.8% to $1.27, demonstrating their commitment to shareholders and financial stability.
See More
Western Gateway Pipeline Project Advances
- Project Advancement: Phillips 66 and Kinder Morgan announced the advancement of the Western Gateway pipeline project, which secured long-term shipper commitments during the second open season, ensuring the project's feasibility and demonstrating market confidence.
- Market Connectivity: The Western Gateway pipeline will connect Midwest and Gulf Coast refinery supplies directly to Arizona and California markets, with connectivity to Las Vegas, Nevada, through Kinder Morgan's CALNEV pipeline, enhancing regional logistics capabilities.
- Asset Utilization: The system will combine new pipeline construction with the use and modification of existing assets, including reversing flows in Kinder Morgan's SFPP pipeline and Phillips 66's Gold pipeline, thereby improving resource efficiency and enabling westbound flows.
- Customer Demand: Phillips 66 CEO Mark Lashier emphasized that positive customer feedback during the open season underscores the importance of the Western Gateway in addressing long-term refined products logistics needs in the region, indicating that the project will drive market growth.
See More
Phillips 66 Declares Quarterly Dividend of $1.27 per Share
- Quarterly Dividend Declaration: Phillips 66 has declared a quarterly dividend of $1.27 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more income-focused investors.
- Dividend Yield: The forward yield of 3.25% reflects the company's attractiveness in the current market environment, potentially boosting investor confidence in its stock.
- Shareholder Record Date: The dividend will be payable on June 1, with a record date of May 18 and an ex-dividend date also on May 18, ensuring eligible shareholders receive their payouts promptly, thereby strengthening shareholder relations.
- Market Outlook: Amid rising global oil prices, Phillips 66 forecasts up to $1 billion in derivatives losses; however, the company continues to demonstrate strong execution and adaptability in the market.
See More
US Stocks Surge as Oil Prices Plunge Amid Peace Talks
- Market Rally: The S&P 500 rose 1.20% and the Nasdaq 100 increased by 1.29%, reaching all-time highs, reflecting investor optimism regarding US-Iran peace talks, which may enhance risk appetite in the markets.
- Oil Price Plunge: WTI crude prices fell over 11% to a five-week low after Iran announced the Strait of Hormuz is fully open, easing inflation concerns and causing the 10-year T-note yield to drop 7 basis points to 4.24%.
- Strong Earnings Season: The earnings season started robustly, with 81% of the 48 S&P 500 companies reporting Q1 earnings exceeding estimates, projecting a 12% year-over-year increase in earnings, providing strong support for the stock market.
- Airline Stocks Surge: Airline stocks surged as fuel costs decreased, with Alaska Air Group (ALK) rising over 10% and Royal Caribbean Cruises Ltd (RCL) up more than 7%, indicating market confidence in the recovery of the airline industry.
See More
Surging Diesel Prices Boost Refiners' Profits
- Diesel Price Surge: Diesel prices have skyrocketed from $3.365 per gallon in January to $5.382, a 59% increase, significantly benefiting independent refiners like Valero and Phillips 66, reflecting strong market demand and supply constraints.
- Valero's Strong Financials: Valero's stock has risen 39% this year and over 105% in the past year, with adjusted net income per share reaching $10.61 in 2025, a 25% increase, demonstrating the company's profitability and competitive edge in a high diesel price environment.
- Phillips 66 Diversification Strategy: Phillips 66 has successfully transformed into a midstream-focused company through acquisitions like DCP Midstream and EPIC NGL, providing more stable cash flow, with adjusted EPS of $6.44 in 2025, up 4.7%, indicating financial robustness.
- Renewable Energy Investment Outlook: Both companies are investing in renewable fuels, with Valero being the largest renewable diesel producer in North America and Phillips 66 converting its San Francisco refinery into a renewable diesel and sustainable aviation fuel facility, signaling their leadership in the energy transition.
See More
Valero Energy and Phillips 66 Shares Surge Amid Diesel Price Spike
- Diesel Price Surge: Diesel prices have skyrocketed from $3.365 to $5.382 per gallon in just weeks, a 59% increase that benefits independent refiners like Valero and Phillips 66, further driving their stock prices upward.
- Valero's Strong Performance: Valero reported an adjusted EPS of $10.61 for 2025, a 25% increase year-over-year, with refinery utilization rates exceeding 96%, significantly above industry averages, showcasing its competitive edge in the market.
- Phillips 66's Diversified Revenue: By acquiring DCP Midstream and EPIC NGL, Phillips 66 has successfully transformed its business model, establishing a more stable natural gas liquids operation that is expected to provide steady cash flow and enhance its risk resilience.
- Dividend Growth and Buybacks: Both Valero and Phillips 66 have increased their dividends by 100% and 101% over the past decade, respectively, and are actively repurchasing shares, which boosts investor confidence and shareholder returns.
See More
Diesel Prices Surge, Refiners Stand to Gain
- Diesel Price Surge: Diesel prices have skyrocketed from $3.365 to $5.382 per gallon in just weeks, a 59% increase that benefits refiners like Valero Energy and Phillips 66 through higher crack spreads, enhancing their profitability.
- Valero's Strong Financials: Valero's stock has risen 39% this year and over 105% in the past year, with an adjusted EPS of $10.61 for 2025, reflecting a 25% increase, indicating robust financial health even before the diesel price surge.
- Phillips 66 Diversification Strategy: Phillips 66 has successfully transitioned into midstream operations through acquisitions like DCP Midstream and EPIC NGL, providing more stable cash flow, and has converted its San Francisco refinery into a major renewable diesel and sustainable aviation fuel facility, positioning itself as a leader in the energy transition.
- Consistent Shareholder Returns: Both Valero and Phillips 66 have increased dividends over the past decade, with Valero raising its dividend by 6.2% to $1.20 per quarter and Phillips 66 by 5.8% to $1.27, demonstrating their commitment to shareholders and financial stability.
See More
Western Gateway Pipeline Project Advances
- Project Advancement: Phillips 66 and Kinder Morgan announced the advancement of the Western Gateway pipeline project, which secured long-term shipper commitments during the second open season, ensuring the project's feasibility and demonstrating market confidence.
- Market Connectivity: The Western Gateway pipeline will connect Midwest and Gulf Coast refinery supplies directly to Arizona and California markets, with connectivity to Las Vegas, Nevada, through Kinder Morgan's CALNEV pipeline, enhancing regional logistics capabilities.
- Asset Utilization: The system will combine new pipeline construction with the use and modification of existing assets, including reversing flows in Kinder Morgan's SFPP pipeline and Phillips 66's Gold pipeline, thereby improving resource efficiency and enabling westbound flows.
- Customer Demand: Phillips 66 CEO Mark Lashier emphasized that positive customer feedback during the open season underscores the importance of the Western Gateway in addressing long-term refined products logistics needs in the region, indicating that the project will drive market growth.
See More
Phillips 66 Declares Quarterly Dividend of $1.27 per Share
- Quarterly Dividend Declaration: Phillips 66 has declared a quarterly dividend of $1.27 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more income-focused investors.
- Dividend Yield: The forward yield of 3.25% reflects the company's attractiveness in the current market environment, potentially boosting investor confidence in its stock.
- Shareholder Record Date: The dividend will be payable on June 1, with a record date of May 18 and an ex-dividend date also on May 18, ensuring eligible shareholders receive their payouts promptly, thereby strengthening shareholder relations.
- Market Outlook: Amid rising global oil prices, Phillips 66 forecasts up to $1 billion in derivatives losses; however, the company continues to demonstrate strong execution and adaptability in the market.
See More
US Stocks Surge as Oil Prices Plunge Amid Peace Talks
- Market Rally: The S&P 500 rose 1.20% and the Nasdaq 100 increased by 1.29%, reaching all-time highs, reflecting investor optimism regarding US-Iran peace talks, which may enhance risk appetite in the markets.
- Oil Price Plunge: WTI crude prices fell over 11% to a five-week low after Iran announced the Strait of Hormuz is fully open, easing inflation concerns and causing the 10-year T-note yield to drop 7 basis points to 4.24%.
- Strong Earnings Season: The earnings season started robustly, with 81% of the 48 S&P 500 companies reporting Q1 earnings exceeding estimates, projecting a 12% year-over-year increase in earnings, providing strong support for the stock market.
- Airline Stocks Surge: Airline stocks surged as fuel costs decreased, with Alaska Air Group (ALK) rising over 10% and Royal Caribbean Cruises Ltd (RCL) up more than 7%, indicating market confidence in the recovery of the airline industry.
See More
