Phillips 66: Wartime Beneficiary Of Surging Diesel And Chemicals Margin (Double Rating Upgrade)

Phillips 66 (PSX) has been upgraded to Strong Buy due to surging diesel and chemical margins, primarily driven by the war on Iran and the closure of the Strait of Hormuz. The company’s heavy crude refining capacity and recent acquisition position it to benefit from high diesel prices and discounted Canadian heavy feedstock. Additionally, disruptions in Asian chemical supply are boosting CPChem’s U.S. operations, and PSX’s NGLs fractionation and LPG exports are highly leveraged to higher oil prices.

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