U.S. Oil Refiners Report $12.6 Billion Second-Quarter Profit

Major U.S. oil refiners Marathon Petroleum, Phillips 66, and Valero Energy reported combined second-quarter profits of $12.6 billion, marking their highest gains since 2022. The surge in profitability resulted from increased refining margins and fuel prices caused by crude supply disruptions in the Strait of Hormuz during the Iran war, alongside attacks on Russian refineries.

In response to these earnings, the three companies returned $6.3 billion to shareholders via dividends and stock repurchases. Phillips 66 approved a $10 billion increase to its share repurchase program, while Valero Energy authorized a new $5 billion program. Marathon Petroleum saw its shares rise approximately 110 percent year-to-date following the record profits.

Executives expressed cautious optimism regarding future demand despite seasonal transitions. Valero Energy specifically expects jet fuel margins to strengthen as arbitrage opportunities for European exports reopen.