US Refiners Reap Benefits of Disrupted Oil Flows

Phillips 66 posted a surprise profit in its first quarter due to higher refining margins. The company's realized margin rose to $10.11 per barrel, up from $6.81 per barrel in the same period last year.

The increase in refining margins can be attributed to U.S. Gulf Coast refiners benefiting from disruptions to Middle Eastern oil flows. This has driven up demand for U.S. fuel exports, allowing these refiners to expand their international sales.

Phillips 66's refining segment reported adjusted earnings of $208 million, compared to a loss of $937 million in the same period last year. The company's crude capacity utilization was at 95%, up from 80% in the previous quarter.