Refiners Squeezed as Majors See Valuation Reset

ExxonMobil ($XOM) received a rating upgrade as analysts cited attractive valuation and overlooked market opportunities, with the stock approaching oversold territory. Chevron ($CVX) was upgraded by Wolfe Research and closed near $165.69 after delivering a 97.6% total return over five years, though recent weakness has tempered the valuation picture. ConocoPhillips ($COP) advanced 1.46% to close at $104.73, while analysts noted that $XOM upstream business can sustain operations with WTI crude below $70, as prices remain above shut-in levels and production growth plans stay on track. Bank of America's head of US equity and quantitative strategy recommended cyclical energy names as "boring" stocks with compelling value amid accelerating capital expenditure trends.

Phillips 66 ($PSX) closed 1.1% higher at $176.42 as the company announced a 7-megawatt waste heat to power facility at its Mewbourn gas processing complex in Colorado, converting turbine waste heat into lower-emissions power without requiring upfront capital. The company also received Foreign-Trade Zone subzone approval for its Billings, Montana operations as part of efficiency initiatives. Valero Energy ($VLO) possesses the right combination of factors for a likely earnings beat in its next quarterly report, according to analysts highlighting its impressive earnings surprise history. U.S. refiners are running "incredibly hard" according to RBC Capital Markets' Head of Global Commodity Strategy, yet gasoline prices remain elevated despite crude oil falling sharply from spring highs, as tight gasoline supplies constrain pass-through to consumers at the pump.

First Solar ($FSLR) closed down 3.49% at $223.97 during the latest trading session. A solar sector peer reported shares surged 118.9% over three months as solar expansion, strong demand, and a planned KORE Power acquisition supported its growth strategy. The divergent performance highlights varied execution across the solar manufacturing and project development landscape.

SLB ($SLB) signed a seven-year contract with Kuwait Oil Company to lead the Ahmadi Innovation Valley initiative, including a dedicated research and development facility focused on digital technology deployment across Kuwait's energy sector. The company is launching a major international innovation hub tied to this long-term collaboration in the Middle East, closely aligned with its core business as a global technology provider. Halliburton ($HAL) is expected to deliver positive Q2 results as stronger North America fracking activity supports the quarter, according to UBS. Greenland Energy ($GLND) is advancing opportunities in Greenland's Jameson Land Basin, described as one of the world's largest remaining underexplored onshore hydrocarbon regions.

The refining capacity constraint dynamic will remain in focus as market participants assess whether elevated utilization rates can eventually translate to retail gasoline price relief despite crude's retreat from spring peaks. Earnings season for integrated majors and independent producers will provide clarity on capital allocation priorities and production guidance, particularly for Permian-focused operators navigating sub-$70 crude. Oilfield services providers face quarterly results that will test whether international contract momentum and North American completion activity can offset pricing pressure in a moderating commodity price environment.