Valero Energy Corp has reported its most profitable quarter on record, measured by earnings per share, as US refiners collectively reap billions in windfall profits from a global fuel crunch.
The surge in refining margins is being driven by persistent supply disruptions linked to the military conflict with Iran and strikes in Ukraine, which have constrained fuel exports and kept wholesale prices elevated relative to crude input costs.
PBF Energy Inc and other major US refiners are also benefiting from the structural imbalance in the market.
The divergence between wholesale crude costs, which have retreated from recent highs, and sticky retail gasoline prices has created a lucrative environment for processors.
This dynamic has allowed American oil majors to position themselves for their strongest quarterly profits in years, even as broader energy markets face volatility.
The ongoing geopolitical friction continues to disrupt global supply chains, creating a significant tailwind for refining capacity.