Phillips 66 (PSX) was higher Thursday as U.S. refining stocks caught a bid, with traders positioning for improved downstream profitability if product pricing remains resilient relative to crude. Refiners often outperform when market conditions point to stronger crack spreads and higher realized margins, and today’s action looked consistent with that theme rather than a single headline.

While the tape was broadly supportive for refiners, PSX has had notable recent company news that may be reinforcing investor appetite. On March 25, Phillips 66 and Kinder Morgan extended the second open season for remaining capacity on the Western Gateway system, pushing the close to April 15 and updating commercial terms to help shippers finalize commitments. That same period also saw bullish sell-side commentary, including a Raymond James price-target increase to $205 while maintaining an Outperform rating.

The next major fundamental checkpoint is first-quarter 2026 results later this month, when investors will look for confirmation that refining capture rates and operating performance are holding up alongside contributions from marketing, midstream, and renewables. Investors will also watch whether the Western Gateway process results in incremental contracted capacity and how management frames capital returns and balance-sheet priorities after recent strategic actions.