Several U.S. refiners hit record highs on Friday as stronger margins lifted earnings, while AI-related stock Lumentum tested a buy point. Refinery disruptions and rising demand for diesel exports have focused attention on changes in U.S. refiners’ profitability. One Chinese stock also reached a 52-week high, though its name was not disclosed.
Refinery disruptions lift diesel margins
H.F. Sinclair, Valero Energy, Marathon Petroleum and Phillips 66 all reached record highs on Friday. U.S. refiners have recently posted triple-digit profit growth.
About 20 refineries in the Middle East were damaged or temporarily shut amid the conflict involving Iran. In an analysis dated September 24, investment manager Louis Navellier estimated that the outages reduced global refining capacity by about 3.52 million barrels per day. Ukrainian strikes on Russian refineries have further tightened supply. Meanwhile, Asian countries have cut fuel exports, while U.S. refineries have avoided the reported shutdowns. Demand for U.S. diesel exports has consequently strengthened, with August shipments reaching a record high.
Mark Malek, chief investment officer at Siebert Financial, said the crack spread—the difference between crude oil and refined-product prices—typically runs at about $20 to $30 per barrel in a normal year. In September, it climbed above $100 per barrel. Malek said the current constraint is in refining, not crude supply, and that U.S. refiners are meeting additional demand as global fuel supplies are disrupted.
Refiners extend their gains
Dallas-based H.F. Sinclair broke above an alternate buy point of $118.39 on Thursday. The stock has gained more than 65% since breaking out at $74.72 on July 8 and then setting a new high. The company operates seven refineries in the U.S. and has a Composite Rating of 98 out of 99.
Valero broke above an alternate entry point of $419.04 last week. It is up about 75% since clearing a buy point at $255.51 on May 18 and has a Composite Rating of 99.
Phillips 66, which operates 12 refineries, has moved above an alternate entry point of $277.12. The stock rebounded near its 10-week moving average after a pullback of about two weeks. On August 31, it broke out of a rising-base pattern at $246.95. Among the refiners discussed, Phillips 66 remains closest to its initial breakout point. Its Composite Rating is 98.
Lumentum tests a buy point
AI-related stock Lumentum was attempting to break through a buy point on Friday. The available information did not specify the price level or the stock’s gain that day.
A Chinese stock also set a 52-week high, but its name and further trading details were not provided, leaving its rally’s background unclear.