Diesel fuel prices have surged dramatically, with the average cost rising 59% from $3.365 to $5.382 per gallon in just a few weeks, primarily benefiting independent refiners like Valero Energy (VLO) and Phillips 66 (PSX). These companies capitalize on the crack spread, which is the difference between crude oil prices and refined products, positioning them favorably amidst fluctuating oil markets.

Valero has seen its stock soar 39% this year, supported by strong refinery utilization rates and a commitment to renewable fuels, while Phillips 66 has diversified its revenue through midstream operations and renewable energy initiatives. Both companies have a solid track record of increasing dividends and share buybacks, enhancing their appeal to income-focused investors.

As diesel prices continue to rise, both Valero and Phillips 66 are well-positioned to capitalize on the trend, with their focus on renewables and robust financials indicating potential for sustained growth. Investors should consider these stocks as viable options for exposure to the energy sector amidst ongoing market volatility.

Source: fool.com