Here's Why PBF Energy Stock Gushed Higher This Week
Key Points
The crack spread, not the oil price, drives PBF's profitability.
Domestic refiners benefit from global supply disruptions in an uncertain global environment.
- 10 stocks we like better than PBF Energy ›
Shares in petroleum refiner PBF Energy (NYSE: PBF) rose by 10.6% in the week to Friday morning as the market reacted to the deterioration in US-Iran relations and the breakdown of the ceasefire agreement.
Why PBF stock soared this week
PBF owns and operates six refineries in the U.S. and has a 50% interest in a renewable diesel facility. While its profitability is tied to conditions in the energy market and end demand for its refined products, the key metric that governs its profitability isn't so much the price of oil, but rather the marginal difference between the price of refined products and the oil, feedstocks, and energy products inputs that it uses to produce them. This is something usually referred to as the "crack spread" in the industry.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
These observations are relevant in a week when oil prices rose amid a resumption of conflict in the Persian Gulf (thereby increasing input costs for PBF Energy), but the stock rose by double digits in response to a concomitant increase in the crack spread. In other words, the increase in the crack spread more than offset the increase in oil prices.
Image source: Getty Images.
Crude oil and refined product availability, not just price
The reason for the increase in the crack spread is that any closure of the Strait of Hormuz not only makes it harder for non-US refiners to acquire crude oil but also slows exports of refined products from the Gulf countries. These pressures naturally lead to a wider spread, and that's great news for PBF Energy.
It also highlights the long-term advantages of owning a domestic refiner amid geopolitical uncertainty.
Should you buy stock in PBF Energy right now?
Before you buy stock in PBF Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PBF Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $407,004!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,244,599!*
Now, it’s worth noting Stock Advisor’s total average return is 924% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 10, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
