Philips 66 Becomes A Top Venezuelan Crude Buyer As Trump Blasts Exxon, Chevron
Phillips 66 stated in its earnings call Wednesday that it has become the world's third-largest buyer of Venezuelan crude, doing so through a fleet expansion and Jones Act waivers as President Donald Trump has pressured Exxon and Chevron over increased profits fueled by the Iran war.
Phillips 66 marketing chief Brian Mandell said the company’s increased purchases of Venezuelan crude is part of a strategy to build a leading position in discounted heavy grades.
The company’s surge in Venezuelan purchases has been bolstered by the Trump administration issuing waivers suspending rules around the Jones Act, a law requiring maritime goods transported between American ports to be carried on ships built and operated by Americans, with Phillips 66 receiving around 20% of all exemptions granted.
The White House is expected to extend the waiver this month, according to Reuters, as Trump has targeted Phillips 66 rivals Exxon and Chevron, saying they are “making too much money” as the Iran war has driven up crude oil prices.
Mandell also said Phillips 66’s time-charter fleet has grown fourfold in the last two years, supporting about 40% of the company’s asset-backed crude and product demand.
Phillips 66 shares fell 1.7% to $202.39 on Wednesday, its lowest point in three weeks. However, the company’s stock has risen 57% since the start of the year, when it traded around $130 per share.
Trump’s criticism of Exxon and Chevron comes as both companies have posted massive profits in their respective second quarters, with Chevron reporting $12 billion in quarterly net profit and Exxon reporting $14.5 billion—more than double what it posted in the same quarter last year. “They’re going to give some of that back to the public and they better cut the retail price, the consumer price,” Trump said. Gas prices in the U.S. jumped to a five-year high in May, and though the average cost for a gallon of gas has fallen to a little over $4, prices are still at levels last recorded before this year in 2022, according to GasBuddy. Phillips 66 has joined in the profits. The company reported $3.8 billion in net income in its latest quarter, an $887 million increase from the same period last year. The benchmark is also the highest quarterly profit Phillips 66 has posted since 2022, when Russia’s invasion of Ukraine sent gas prices soaring.