US refiners outperform S&P 500 energy sector as margins rebound

U.S. refiners are poised to clock annual gains in 2025 and are among the top performers on the S&P 500 energy index .SPNY

The stocks were boosted after U.S. refining margins rebounded from multiyear lows in 2024, as supply shortages tied to geopolitical tensions in Ukraine supported stronger pricing

The 3-2-1 crack spread CL321-1=R, which measures refining margins, rose over 18% through 2025 and is set to snap a two-year losing streak

Top US refiners Valero Energy VLO.N surged over 34% in 2025, followed by Marathon Petroleum's MPC.N 17.4% gain and Phillips 66's PSX.N 13.7% rise

During the year PSX focused on streamlining operations, after a long-drawn proxy battle with activist investor Elliott Investment Management

It also acquired full ownership of two major U.S. refineries, collectively known as WRB Refining, in a $1.4 billion deal

Smaller refiners HF Sinclair DINO.N gained just over 30%, Delek US Holdings DK.N rose 61.6%, while Par Pacific Holdings PARR.N more than doubled

Meanwhile, S&P 500 energy index has risen over 4% YTD with VLO, EQT Corp EQT.N MPC and PSX leading the gains