Phillips 66 Suffers $900 Million Loss Amid Record Oil Price Surge

Phillips 66 is facing significant financial losses due to its net short position in derivatives contracts related to crude oil and refined petroleum products. The company's losses are estimated to be around $900 million, primarily attributed to its exposure to Brent futures and West Texas Intermediate prices.

In March, Brent futures experienced a record monthly increase of 64%, while U.S. benchmark West Texas Intermediate gained around 52% in the same period, according to LSEG data.

The losses are distributed across various business segments, with the refining segment expected to see an impact of $350 million to $450 million, and the marketing and specialties segment facing a loss of $300 million to $400 million. The renewable fuels segment may experience $100 million to $200 million in losses.

Phillips 66 has not completed its financial closing procedures for the first quarter, so actual results could vary from these preliminary estimates. The company is set to report its first-quarter earnings later this month and declined to comment beyond the SEC filing.