Phillips 66 Slammed with $900 Million Loss Amid Iran Crisis Oil Price Surge

Phillips 66 is facing a significant financial loss of approximately $900 million due to its net short position in derivatives contracts. The company's losses are mainly attributed to crude oil and petroleum products, which saw a surge in prices after the U.S.-Israeli war on Iran began in late February.

The crisis led to Iran's effective closure of the Strait of Hormuz, causing a bottleneck for global oil supplies and sending crude prices soaring. Brent futures hit a record monthly increase of 64% in March, according to LSEG data, while U.S. benchmark West Texas Intermediate gained around 52% in the month.

Phillips 66's net short position in derivatives contracts related to crude oil and petroleum products was approximately 50 million barrels as of the end of March. The company's losses are distributed across its business segments: refining, marketing and specialties, and renewable fuels.