Sep. 22 at 6:23 PM
Ukraine’s drone attacks on Russian refineries are disrupting global oil markets, cutting Russia’s exports by about 300,000 barrels per day. U.S. refiners like Valero, Marathon Petroleum, and PBF Energy are benefiting from wider profit margins on gasoline and diesel, with one margin measure up 34% year-over-year.
Valero’s stock has risen 13% in the past month, Marathon 9.4%, and PBF 25%, while more diversified oil companies like Exxon Mobil have seen limited gains due to flat crude prices. Analysts expect the attacks to continue supporting refiners, with Marathon particularly well-positioned to convert high margins into cash flow. UBS also raised its earnings estimates and price target for Valero following the attacks.
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