According to Mark Lashier, President and CEO of Phillips 66, US fuel demand has been ‘flat to weak’ this year. With the price of oil at $68 and pump prices below three dollars, demand has been affected by high interest rates that have slowed the economy, particularly for low-income consumers during the summer.

However, refineries performed well, with attractive margins in 2022 and 2023. Although demand has remained stable, exports have performed well. Lashier anticipates a rationalisation of global refining capacity by 2025, with a reduction in production of between six and seven hundred thousand barrels per day. However, he remains optimistic for the refining sector in the medium to long term, anticipating that current refining capacity will not be sufficient to meet global demand.

Phillips 66 will maintain its usual autumn maintenance programme despite moderate demand. The company has invested $1.2 billion to convert the Rodeo refinery into a renewable fuels facility, now producing renewable diesel and jet fuel.

Finally, the Group is closely monitoring the elections and their potential impact on energy policy, hoping for greater predictability and reforms to permit procedures to facilitate the energy transition.

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