Unknown Analyst

Great. Good morning. Thank you all for joining us this morning at the conference. I have the pleasure of introducing Mark Lashier, Chairman and CEO of Phillips 66. Mark has been in the role since July of 2022. Prior to that, most recently, he ran CPChem business, having started his career with Phillips Petroleum in the late 1980s. So Mark, thanks very much for joining us today.

Mark Lashier
CEO & Chairman

Matt, glad to be here.

Unknown Analyst

With the recent reopening of the Strait of Hormuz after a period of heightened Middle East tensions and closure, how are you assessing the macro outlook for crude and the refined products over the near and medium term? Specifically, how quickly Middle Eastern barrels normalize back into the trade flows and the read-through for light heavy differentials and product cracks?

Mark Lashier
CEO & Chairman

Yes, Matt, I think that's top of mind for everybody across the industry. It's -- we're all hopeful that the Strait is open, stays open, that it gets resolved in a permanent structural way. But I think it's going to be pretty tenuous. There are ships coming out now. I think that there's somewhere between 90 million and 100 million barrels trapped in the Strait. That will work its way out over time. Then the question is who will be brave enough to send ships back in? Will it be able to get insurance? How does that all play out? Because that's the next critical step. We believe that most of the tanks onshore are full before crude can appreciably ramp up, you have to get some room in those tanks to place that crude.