PSX · 10-Q · 2026Q2 · Full report

Refining Margin Trends

Phillips 66 · 2026-08-05 · Importance 63 · Surprise 64

Refining segment income before taxes increased $2.7 billion in the second quarter and $3.8 billion in the first six months of 2026. Worldwide realized refining margins increased to $24.08 per barrel in the second quarter from $11.25 and to $17.21 per barrel in the first six months from $9.23. The composite 3:2:1 market crack spread increased to $41.63 per barrel from $21.65, driven by low seasonal product inventories, particularly diesel, and geopolitical disruptions to product resupply. Worldwide refining utilization was 96% in the second quarter and 95% in the first six months, compared with 98% and 89% in the respective 2025 periods; quarterly utilization declined because of higher turnaround activity, while year-to-date utilization increased because of lower turnaround activity.

Key facts

• The composite 3:2:1 market crack spread increased to an average of $41.63 per barrel during the second quarter of 2026, from an average of $21.65 per barrel during the second quarter of 2025. source
• Worldwide realized refining margin was $24.08 per barrel for the three months ended June 30, 2026, compared with $11.25 per barrel for the three months ended June 30, 2025. source
• Results from the Refining segment increased $2,703 million and $3,848 million for the three and six months ended June 30, 2026, respectively. source
• The increase in net income in Q2 2026 was primarily due to improved realized margins for the Refining segment and higher values of regulatory credits in the Renewable Fuels segment. source
• Realized refining margins worldwide were $17.21 per barrel for the six months ended June 30, 2026. source
• Realized refining margins worldwide were $9.23 per barrel for the six months ended June 30, 2025. source
• Income before income taxes per barrel worldwide was $16.39 for the three months ended June 30, 2026. source
• Phillips 66's worldwide refining crude oil capacity utilization rate was 96% and 95% for the three and six months ended June 30, 2026, respectively, compared with 98% and 89% in the three and six months ended June 30, 2025, respectively. source