All Posts Tagged With: "Valero"

Global Oil Demand: Are You Ready for Gasoline Under a Buck a Gallon?

When I started driving, gasoline still contained lead and regular was selling for 29 cents a gallon. My father remembers 10 cents a gallon.

While it’s highly unlikely we’ll ever see those prices again, you could see gasoline below $1 a gallon, and it just might hit $0.75 a gallon. It might not be in time for Christmas, but the Easter Bunny might leave it in your Easter Basket.

That’s not just wishful thinking on my part: The International Energy Agency’s (IEA) most recent monthly forecast (released just yesterday) indicates year-over-year global oil demand will shrink in 2008 for the first time…

16Dec2008 | Investment U | 0 comments | Continued

Buy, Sell or Hold: Valero Energy Corp.

Valero Energy Corp. (NYSE: VLO), the largest independent refiner in the U.S. market, is a well-known and avidly traded name. Despite being a member of the super hot energy sector, Valero has seen its stock price collapse from its 52-week high of $75.75 to Friday’s close at $34.72 (a 54% decline). The 52-week low is $29.70, and the Wall Street analyst community remains very negative on the shares of the San Antonio-based company – even though it beat analysts admittedly reduced expectations for both revenue and earning.

The $64 million question (*) is this: Is it time to buy? During the…

11Aug2008 | Money Morning | Comments Off | Continued

Energy Q&A Part II: Investing in Oil Refiners and Oil Service Companies

Q: “Why is it that the refiners aren’t making any money with oil as high as it is? Aren’t they charging more for their services?”

Refiners make money on the “crack spread”. They profit from the difference between the price of crude oil they buy and they price they receive when they sell the refined product. But right now, refiners are squeezed between rising crude prices and consumer resistance at the gas pump.

Refiners have to pay the world price for crude oil. The markets dictate that price. Right now, there are no major physical shortages in the reports from the oil…

19Jun2008 | Energy and Oil | Comments Off | Continued

Special Energy Indicator Points Toward Higher Gas Prices – and a Potential 467% Profit Play

Here at Money Morning over the past six months, we’ve talked a great deal about oil and gasoline prices. We’ve offered our predictions about how high those prices were going, and have detailed a number of investment opportunities – chosen as much for their margins of safety as for their profit potential.

This time we’re going to detail three energy stocks with the potential for double-digit – or even triple-digit – profit gains. Admittedly, these are longer-shot, speculative plays. But we used a special energy indicator to help ferret out these energy plays.

This indicator is known as the “crack spread.”

In case you’ve…

13Jun2008 | Money Morning | Comments Off | Continued

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