Phillips 66’s performance
However, among its peers, Phillips 66 stock has fallen the least. Valero Energy (VLO), Marathon Petroleum (MPC), and PBF Energy (PBF) have lost 18.4%, 19.7%, and 21.1%, respectively, in the same period.
Phillips 66’s moving averages
On May 3, 2019, Phillips 66’s ten-day moving average stood 1.9% below its 30-day moving average. However, now the gap between both moving averages has widened to 5.6% due to a steeper fall in PSX’s ten-day moving average. The bigger the gap is between moving averages, the more difficult it is for the ten-day moving average to cross over the 30-day moving average—not a favorable scenario.
Why has Phillips 66 stock fallen?
In the past month, Phillips 66 stock has fallen due to weaker equity markets. Lower first-quarter earnings could have also affected the stock. Phillips 66’s adjusted pretax earnings fell due to a year-over-year fall in its Refining, Chemicals, and Marketing and Specialties earnings partially offset by a rise in its Midstream earnings. For more on these earnings, read Phillips 66 Posts Weak First-Quarter Earnings.
However, the fall in PSX has been restricted by better refining crack conditions. The US Gulf Coast WTI 3-2-1, the benchmark crack, has risen 11% YoY to $20.1 per barrel in the second quarter. The US Gulf Coast is a vital refining area for Phillips 66, which processed 36% of its total oil and feedstock throughput in the region in the first quarter. The rise in the crack could support PSX’s refining margin and earnings in the quarter.