U.S. oil refiners see record Q2 profits amid supply disruptions

Major U.S. independent oil refiners, including Marathon Petroleum, Phillips 66, and Valero Energy, reported a combined profit of $12.6 billion in the second quarter. This represents the highest quarterly earnings for these companies since the start of the Russia-Ukraine war in 2022.

These increased profits are attributed to surging fuel prices and refining margins caused by disruptions to crude supplies through the Strait of Hormuz and attacks on Russian oil refineries. These supply constraints have led international buyers to pay higher prices to secure energy supplies.

In response to the windfall, the three refiners returned $6.3 billion to shareholders through dividends and stock repurchases during the second quarter, a significant increase from the $2.6 billion returned during the same period last year. Analysts expect robust buyback programs to continue, with Marathon and Valero potentially repurchasing significant portions of their market value through the end of next year.