Phillips 66 CEO Warns 20% Crude Supply Risk Will Last Months to Years
Phillips 66 CEO Mark Lashier warns that 20% of global crude passes through the Strait of Hormuz and disruptions from the Iran conflict will have “tail effects” months to years, despite crude tumbling 7% to $92. PSX shares slid 8% in 30 days and carry a $154 JPMorgan target.
1. CEO Warns of Prolonged Supply Impact
Chief Executive Mark Lashier cautioned that even if a Middle East ceasefire is reached, the damage to global oil infrastructure won’t be undone quickly. He emphasized “tail effects” from disrupted flows through the Strait of Hormuz, suggesting some losses could persist for months or years.
2. Global Oil Logistics and Price Reaction
Roughly 20% of the world’s crude and LNG transit the Strait of Hormuz, and its stoppage has forced Asian refiners to cut output and scramble for North American and Atlantic Basin barrels. Crude futures fell about 7% to $92 after peaking near $120, but remain roughly 30% above pre-conflict levels.
3. Stock Performance and Analyst Outlook
PSX shares have dropped 8% over the past month despite a 62% gain over the last year. JPMorgan’s Zach Parham projects a structurally tighter market for gasoline and diesel, backing an Overweight rating and a $154 price target as Phillips 66’s refining mix benefits from persistent fuel shortages.