(Bloomberg) — Phillips 66 is maximizing diesel production to take advantage of strong demand and would consider investing in projects that give its refineries greater flexibility to tweak fuel output to match changing consumption patterns. The refiner reported second-quarter earnings on Friday that topped analysts’ estimates, with wider-than-expected margins boosting profit in its fuel-making division 19% from a year earlier. “Refining margins have been driven by strength in diesel,” Chief Financial Officer Kevin Mitchell said in an interview. “That is a function of very low inventories for distillate as well as strong demand.” Phillips 66 would consider projects that increase its ability to shift between making gasoline and diesel as the trend of low inventories and high demand for diesel persists, Mitchell said. The company earlier this year completed a project at its refinery in Sweeny, Texas, to allow it to more easily switch between processing heavy and light crudes. “We would expect distillate margins to remain strong through the end of the year,” Brian Mandell, executive vice president of marketing and commercial, said on an earnings call Friday. Hurricane season, fall turnarounds and then winter heating demand all support strong profits for producing diesel, Mandell said. Diesel has been a focus for refiners and fuel traders this year after President Donald Trump’s trade war roiled markets, turning speculators bearish on the industrial and road fuel, which is closely tied to the health of the global economy. But as diesel inventories dwindled into the summer months, traders have boosted bullish bets on the fuel, making it a bright spot for broader oil prices. “We feel good about where the economy is at this point in time, but acknowledge there is uncertainty,” Mitchell said. Heading into the second half of the year, OPEC’s production increases should pressure heavy crude prices, benefiting Phillips 66, Mitchell said. At the same time, about 1.1 million barrels of daily refining capacity is set to close this year — including Phillips 66’s Los Angeles refinery — and capacity additions in Asia are focused on petrochemicals rather than refined products, Mitchell said. “You put all that together, and we’re relatively bullish on refining for the near to medium term,” he said. (Updates with executive’s comment in fifth paragraph) More stories like this are available on bloomberg.com ©2025 Bloomberg L.P. in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
Phillips 66 considers increasing its capacity to modify fuel production.
