Valero Energy (NYSE:VLO) closed +3.3% on Thursday after saying it expects Q1 U.S. refining margins will probably be supported by tighter provide brought on by a number of turnaround initiatives forward of the summer time driving season, based on Dow Jones.
Valero (VLO) executives additionally mentioned on the post-earnings convention name they have been optimistic about near-term gasoline and diesel margins resulting from robust home demand and first rate export volumes.
“In the near term, product inventories ahead of the summer driving season are expected to be constrained with heavy industry-wide turnaround activity in the first quarter, providing support to refining margins,” President and CEO Lane Riggs mentioned on the decision.
Valero (VLO) mentioned its 14 refineries are scheduled to function at 83%-86% of mixed whole throughput capability in Q1, after hitting 94% in This fall 2023.
The firm’s wholesale gasoline volumes up to now in Q1 are “down a few percent” from final yr due because the latest chilly climate blast has suppressed demand, however wholesome exports have left “us pretty optimistic on gasoline cracks once we move into spring when gasoline demand improves with the driving season,” COO Gary Simmons mentioned on the decision.
Demand for diesel on Valero’s (VLO) system up to now this quarter is working ~7% larger than a yr in the past, due partially to low inventories and stronger heating demand within the U.S. and Europe, Simmons additionally mentioned.