Refiner Stocks Surge as Global Fuel Market Tightens

U.S. refiner stocks are rallying due to global fuel market tightness caused by over 7 million barrels per day of refined product flows offline in the Middle East and Russia.

The wars in Iran and Ukraine have created a major supply gap, with refining capacity outside these regions unable to fill it.

U.S. refiner stocks such as Phillips 66 (PSX:NYSE), Valero Energy (VLO:NYSE), and Marathon Petroleum (MPC:NYSE) have more than doubled this year, outperforming the oil majors by a significant margin.

The last time refiners saw surging refining margins was in 2022 following the Russian invasion of Ukraine.