WTI Crude Above $90, U.S. Gas at $3.32 Boosts Phillips 66 Margins
West Texas Intermediate crude surpassed $90 per barrel, pushing U.S. average regular gasoline to $3.32 per gallon and diesel to $4.33, the highest levels since mid-2024. Refineries such as Phillips 66 stand to see widened crack spreads as rising fuel prices outpace crude input costs.
1. Crude and Gasoline Price Surge
West Texas Intermediate light crude rallied above $90 per barrel for the first time since October 2023, driving the U.S. average regular gasoline price up to $3.32 per gallon, a peak not seen since May 2024.
2. Diesel Spike and Refining Margins
Diesel prices jumped 15.3% in one week to $4.33 per gallon, signaling strong demand and feeding directly into refining cost structures that underpin crack spreads.
3. Implications for Phillips 66
The widening gap between crude costs and retail fuel prices is poised to expand refining margins at Phillips 66, with higher crack spreads potentially boosting quarterly earnings.