Valero Energy Corp (VLO)

VLO

Oil companies to take another hit soon. The suden rise in gas prices will hurt them once again until they get the idea that as far as consumers are concerned.......enough is enough.......!! I've been on roller coasters with less up and downs than gas prices have been in the past months.

I dont see much happining with Valero in the short term.

until oil demand picks up/becomes more profitable

Valero is a "merchant refiner." This means that it is not a fully integrated oil company with significant stake in proved oil reserves - rather, it is at the mercy of the marketplace for buying its crude feedstock. When refining margins are good, Valero does well. However, as crude oil prices rise faster than refined product prices, Valero gets caught in the squeeze. The general consensus among industry players is that we have turned the corner on world refining capacity - it is now more than required for world crude oil production. It would seem that the golden age of petroleum refining is gone. My money is going to the oil companies with the largest proven crude oil reserves.

Dont have much hope for this one :( Although, I think this new deal will help prevent a cut in dividends or issue of more shares. However, the dollar must drop at some point and we all know what that will do to oil prices/ refine profits. No win for refineries (even at their current stock price) in my opinion. This one will continue to drop even though everyone wants it right now for some reason.

They're a giant refiner.

Put a fork in this one; it is well done!

1) Chart looks like an elevator with a broken cable.

2) Valero is in the refinery business and there is a critical shortage of refining capacity in the USA (or so I thought) and yet they just sold a refinery to ALON.

3) Alon will probably make a go of that refinery so what does that tell you about the management at Valero?

No wonder the institutional money is running low in Valero's tank...

PS World oil demand has only grown by a tiny 1 1/2 percent yet oil doubled in about the same time frame! Also; the US dollar has only lost a relatively small amount in the same time frame against other currencies (in relative terms of course)...

Short term as crude prices remain high the refiners will suffer.

multiple technical signals (contrary) (score .25)

Refining costs along with decreased demand in 5 years will kill the stock.

The company is selling a lot of assets and losing money in the midwest. Until their investments pay off, they'll be a loser.

Decrease in oil prices

With oil hovering the $110 mark, the crack spread is absolutely torturing the refiners. Pure play refiners like Valero and Tesoro will be hurt the most. I see Valero with more potential downside in the refining group becuase its the biggest refiner in the US. Although the driving season is quickly approaching I think the stock will go nowhere but down for the next few weeks. Another factor that hurts the outlook for Valero is the fact that US Gasoline demand seems to be decreasing. Americans are finally learning not to drive so much and buy ridiculous gas guzzling SUV's. The worsening credit market will indirectly hurt Valero as people will "feel" as if they shouldn't be taking weekend vacations that involve long drives and thus more gasoline fill-ups.

need better crack spreads

just cant seem to get started

ccest compte

margin squeeze and recession

always something to drag down the price of stock,,,,,

it's a sure sign of weakness in the company, it dosen't make any sense-(these excuses to effect the value of it's stock) ??? it's time to get out!!! with all the money they make--something is wrong!!!