Spread between "heavy" crude and "light sweet" crude

[adios]

Most definitely a spread exists. Refiners that refine "heavy" crude into petroleum products reap the benifits for obvious reasons. Even though this doesn't fit my criteria for a stock pick, I bought some Valero today. They recently bought out an independent refiner of "heavy" crude whose profit growth is enormous.

[Sniper]

VLO is an excellent company in an strong group... nice addition!

[Delphin]

[ QUOTE ]
Most definitely a spread exists. Refiners that refine "heavy" crude into petroleum products reap the benifits for obvious reasons. Even though this doesn't fit my criteria for a stock pick, I bought some Valero today. They recently bought out an independent refiner of "heavy" crude whose profit growth is enormous.

[/ QUOTE ]

I've taken a position in VLO lately as well:

Bought @ $75.55 on 4/26
Bought @ $62.49 on 5/13

Today it's trading at $82.85 /images/graemlins/cool.gif /images/graemlins/cool.gif /images/graemlins/cool.gif

[AceHigh]

Are you worried that you are buying at the top?

Oil is $60+/barrell right now and my guess is it is going lower rather than higher, in say the next couple of months. This is peak season for oil, Sept/Oct should see demand and prices drop shouldn't they?

[FishHooks]

[ QUOTE ]
Are you worried that you are buying at the top?

Oil is $60+/barrell right now and my guess is it is going lower rather than higher, in say the next couple of months. This is peak season for oil, Sept/Oct should see demand and prices drop shouldn't they?

[/ QUOTE ]

When demand goes up, the price goes up and when the supply doesn't go up either thats simple economics.

[AceHigh]

I'm not sure what you are saying but VLO hit 81 on 4/7. It closed at 82.78 Friday. So if you are not careful you could be buying in the 80's and watching the stock drop in the short term.

http://finance.yahoo.com/q/hp?s=VLO&d=6&e=31&f=2005&g=d&a=0&b=4&c=1982&z=66&y =66

[FishHooks]

I thought you were talking about the price of oil going lower, but you were refering to the stock, my bad I was all confused.

[Sniper]

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So if you are not careful you could be buying in the 80's and watching the stock drop in the short term.


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Is your statement based on any kind of analysis other than the fact that stocks can go up and down?

[AceHigh]

No. I'm saying we are in peak demand season, much like earlier in the year and the price of oil and the price of the stock are both likely to fall as demand falls. It's no big secret that winter (heating) and summer (driving/cooling) are the big demand times for oil.

[lu_hawk]

are you the only one who knows of this spread?

[Sniper]

[ QUOTE ]
are you the only one who knows of this spread?

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Hawk, if you want more info on the spread he is describing, you can read thru the analyst research on this company.