U.S. Gasoline Prices Hit Four-Year High Amid Rising Crude Costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Newsfilter
- Gas Price Surge: According to the American Automobile Association (AAA), U.S. gasoline prices have reached their highest level in nearly four years, rising over 40% since the U.S. and Israel attacked Iran at the end of February, with current prices near $4.18 per gallon, reflecting an 11-cent increase this month and a $1.19 rise since late February, indicating market sensitivity to oil price fluctuations.
- Rising Crude Prices: Last week, Brent crude futures surged about 16%, while U.S. West Texas Intermediate rose nearly 13%, primarily due to escalating supply concerns as efforts to end the Iran conflict stalled, further driving gasoline prices upward.
- Refinery Maintenance Impact: BP's refinery in Whiting, Indiana, experienced a brief power outage that shut down one of its processing units, while Phillips 66's Wood River refinery in Illinois took its crude oil unit offline for a planned 45-day maintenance period, which will keep gasoline prices elevated in the Midwest region.
- Price Increase Expectations: GasBuddy analyst Patrick De Haan noted that retailers in the Great Lakes region might raise gasoline prices again as early as today, exacerbating the financial burden on consumers amid ongoing refinery issues and maintenance schedules.
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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: 173.490
Low
110.00
Averages
132.40
High
162.00
Current: 173.490
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.
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- Increased Per Barrel Profit: The realized refining margin reached $10.11 per barrel in Q1, up from $6.81 per barrel a year earlier, reflecting enhanced profitability in the refining segment.
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See More
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- Fed Policy Influence: The Federal Reserve kept the federal funds rate unchanged at 3.50% to 3.75% during its latest meeting, despite dissent from four members against easing bias, reflecting concerns over economic uncertainty that may dampen investor confidence.
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See More
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- Strong Tech Stock Performance: The Nasdaq 100 index increased by 0.09%, primarily driven by strong earnings from NXP Semiconductors and Seagate Technology, both up over 14%, indicating robust demand for AI infrastructure.
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- Fed Policy Remains Unchanged: The Federal Reserve decided to keep monetary policy unchanged at the FOMC meeting despite a record number of dissenting votes, with markets anticipating future policy will continue to focus on oil prices and inflation dynamics.
See More
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- Refining Margin Increase: The company's refining margin rose to $10.11 per barrel in Q1 from $6.81 per barrel a year ago, reflecting a 48% year-over-year increase, indicating successful profitability enhancement amid volatile commodity prices.
- Capacity Utilization Improvement: Crude capacity utilization reached 95% in Q1, up from 80% a year earlier, showcasing the company's ability to adapt to recovering market demand and further solidifying its market position.
- Market Risk Management: Despite facing $839 million in mark-to-market losses from derivative positions, Phillips 66 demonstrated strong financial resilience, with the CEO expressing confidence in navigating market volatility, highlighting the effectiveness of its integrated business model.
See More
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- Oil Price Surge: WTI crude oil prices increased by over 5% to a two-week high as the US maintains its naval blockade of Iran, raising inflation expectations and negatively impacting stocks, potentially exacerbating the global energy crisis.
- Strong Housing Data: US March housing starts unexpectedly rose by 10.8% to 1.502 million, surpassing expectations, indicating resilience in the real estate market and potentially providing support for stocks.
- Tech Earnings Anticipation: With earnings reports from Alphabet, Amazon, Microsoft, and Meta Platforms on the horizon, market expectations are high for technology stocks, as 80% of S&P 500 companies have already exceeded earnings estimates, projecting a 12% year-over-year increase in Q1 earnings.
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