So what's the deal with vlo? There isn't much news on them and their revenue estimates have been slashed multiple times for both 2008 and 2009. Even with lower estimates they're still trading at 7.xx 2008 eps and 5.xx eps for 2009. I would invest, but that chart is nasty and the revenue trend looks ugly
Watch the "crack" spread. That will give you the best indicator of a turn in the refining sector. Right now, the refiners might just have to go "off-line" in order to stabilize these weak 'cracks' and that would mean much lower revs. http://www.oilintel.com/spothome.cfm?loc_id=7
Crude is taking a dive but refiners have been getting bounded the past days, even in a rising general market. Anyone wager a guess why?
Does anyone know what the symbol for VLO Sector is? I trade a few oil stocks and would like to organize them by sector. Thanks
the CL:XB crack is just over $2 right now. The CL:XB:HO 321 is ~ $10 Which means they're not making any money refining right now.
i bouhgt a miniscule gambling position in TSO rite before it dropped on some negative hedging news. question since TSO has refineies in CA isn't the crack spread over there a bit beter than the rest of USA since gas is more expensive or does CA have more expensive gas just because of taxes?
Valero has more throughput capacity than most other refineries (except FTO) for sour heavy crude, which is obviously cheaper. If you think oil is headed lower, refineries are an absolute screaming buy for a long term investment right now. When gasoline falls sub-$3.30-ish(?), demand will rocket. Diesel under $3.75-ish should have a similar effect on the industrial side. Under $3 for either will create real demand for refinery utilization.
The higher gasoline prices in CA have to do with taxes and the fact that CA mandates an RBOB (reformulated) blend that is more costly.