Phillips 66 Thrives Despite High Oil Prices
The refining industry has been resilient despite high oil prices, thanks to strong demand for fuels and tight global fuel inventories. According to Oilprice.com, West Texas Intermediate (WTI) oil prices are currently around $100 per barrel due to conflicts in the Middle East. The U.S. Energy Information Administration projects a spot average WTI price of $84.65 per barrel in 2026, up from $65.40 in 2025.
Phillips 66 (PSX), a leading refiner with significant refining activities, is likely to be hurt by high oil prices despite its diversified business across midstream and chemicals. The company has allocated capital to midstream operations, which generates stable cash flows and is less vulnerable to commodity price volatility.
Diversified companies like Phillips 66 are better insulated from commodity price fluctuations compared to their refining peers. HF Sinclair (DINO) and Par Pacific Holdings Inc. (PARR), two other well-known refiners, have also benefited from the favorable refining business environment.