Valero Positioned to Benefit from Eased Venezuela Sanctions

13 days ago

Tachana Dar

"Well, we'll kick it off with oil refiners like Valero Energy jumping 5% after reports the US will ease sanctions on Venezuela, which will allow the company to sell oil indefinitely. And that is boosting the oil refiners because Venezuela is known for its heavy crude oil, which requires a specialized refinery units to remove the impurities and break it down into high value products like gasoline uh and diesel. And less than half of US refineries have a Coker according to Bloomberg Intelligence, which is the specialized unit you need uh to do that."

The commentary highlights Valero Energy's potential upside as easing Venezuela sanctions could allow the company to sell oil indefinitely. This advantage is underscored by Valero's specialized refining capability—processing heavy crude oil that few US refineries can handle—making it well positioned relative to peers.

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