Cheap Crude Delivers Big Earnings for US Refiners

U.S. refiners Marathon Petroleum, Valero Energy Corp., and Phillips 66 reported strong fourth-quarter earnings, exceeding estimates due to an abundance of cheap crude oil. The refining industry is benefiting from global fuel demand rising faster than new refining capacity, allowing them to purchase less expensive feedstock and sell finished fuels at higher prices. Executives anticipate continued profitability in 2026 and beyond, with strong margins and growing demand, particularly boosted by access to cheaper heavy crudes like those from Venezuela.