Here's Why Shares in PBF Energy Popped Higher (And are a Great Way to Hedge Geopolitical Conflict)
Investors are seeing the benefit of protecting against the risk of the Strait of Hormuz being restricted by the increase in PBF stock in 2026.
Overview
Shares of petroleum refiner PBF Energy (NYSE: PBF) rose by 10.5% in the week to Friday morning. The reason for the move is pretty straightforward, but the factors that need to come together to stop it are anything but straightforward.
The refiner's stock is up almost 125% in 2026 as of the time of writing. The overall move and this week's performance are driven by higher crack spreads. In other words, the difference between the price of refined products and the key input price of crude oil.
Details
The most commonly followed crack spread is the so-called 3-2-1 crack spread. It represents the difference between two barrels of gasoline and one barrel of diesel compared to three barrels of crude oil. This is the key metric for PBF, rather than focusing solely on crude oil input prices. The good news, from PBF's perspective, is that the 3-2-1 crack spread has risen by double digits over the last week to close to $69.
Source
Originally published at www.fool.com.