Boston, MA 10/23/2013 (wallstreetpr) – After receiving a beating for the past 6 months, oil refiners finally received a sigh of relief after the cost of a barrel of crude oil fell to below $100. This is because when the prices of crude oil drop, refinery tends to spread and increase. This saw share of refinery companies’ spike. The company that is set to benefit more from the new trend is Valero Energy Corporation (NYSE:VLO). Being the largest refinery in North America, the company is able to export one in every four barrels refined, it also has strategically placed refineries reducing the cost of operation. The low cost of energy boom in North America will also bolster the company even further.
After the relief of prices on crude oil, various analysts estimated the company’s shares upwards with the highest coming from S&P of about $46 per share. In the week ended, the company’s shares rose to $0.70 to sell at $40.45 which was a 1.76% gain. The company also managed to move over 11 million shares in volume to almost double its 3 months average of just about 6 million shares per day.
In the past quarter the company’s shares have grown by 13.38% and recorded a 52 week high of $44.76 and a 52 week low of $25.49 per share. On Thursday October 17, there was news about a leaked Environmental Agency document. The document in summary sited reduced renewable fuel obligations for US based gasoline and diesel refineries. The news saw shares of companies in that field including those of VLO rally strongly on Friday. With these latest trends it can only get better for the company in the stocks market as well as in the field. Currently, the company’s stock is valued at less than 20% over book value.
