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Phillips 66 Stock Has Risen 10% in Q1

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Phillips 66 stock rose

Since January 2, the beginning of the first quarter, Phillips 66 (PSX) stock has risen 10.5%.

During the current quarter, the SPDR S&P 500 ETF (SPY), the broader market indicator, has risen 11.6%. Phillips 66 posted better-than-expected fourth-quarter earnings, which had a positive impact on its stock. To learn more, read Phillips 66 Posted Record Q4 Earnings, Stock Rose.

However, the USGC WTI 3-2-1, the benchmark crack, has fallen since January 2. The crack has fallen 3.7% since January 2 to the current level of $11.6 per barrel. In the previous week, the crack touched highs of $16.4 per barrel. On a sequential average basis, the crack has fallen 17.0% YoY to $12.1 per barrel in the first quarter.

The US Gulf Coast is a major refining area for Phillips 66. The company processed 36% of its total oil and feedstock throughput in the region in 2018. The fall in USGC WTI 3-2-1 crack could indicate a weaker refining margin and earnings for Phillips 66 in its first-quarter results.

Overall, Phillips 66 stock has risen due to higher earnings and the favorable equity market. Lower cracks have been pressuring the stock. If the crack doesn’t increase going forward, then it could impact Phillips 66 stock’s uptrend.

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Peers’ performance

Valero Energy (VLO), Marathon Petroleum (MPC), and PBF Energy (PBF) have risen 12.9%, 9.0%, and 1.7%, respectively, since January 2. HollyFrontier (HFC) and Delek US Holdings (DK) have risen 8.2% and 11.5%, respectively.

Next, we’ll discuss what Phillips 66’s moving averages suggest.

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