Phillips 66 Surges as Top Venezuelan Crude Buyer, Trump Targets Rivals

Phillips 66 has become the world's third-largest buyer of Venezuelan crude oil, according to its recent earnings call. The company's marketing chief, Brian Mandell, attributed this increase in purchases to a strategy aimed at building a leading position in discounted heavy grades.

The surge in Venezuelan crude buys was bolstered by the Trump administration issuing waivers suspending rules around the Jones Act, a law requiring maritime goods transported between American ports to be carried on ships built and operated by Americans. Phillips 66 received around 20% of all exemptions granted, with the White House expected to extend the waiver this month.

The company's time-charter fleet has grown fourfold in the last two years, supporting about 40% of its asset-backed crude and product demand. This expansion has contributed significantly to Phillips 66's increased purchases of Venezuelan crude.

Phillips 66 rivals Exxon and Chevron have been targeted by President Trump for their massive profits fueled by the Iran war. The president criticized them for 'making too much money,' saying they should give some back to the public and cut retail prices. Gas prices in the U.S. jumped to a five-year high in May, although they have since fallen slightly.