#1
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Spread between \"heavy\" crude and \"light sweet\" crude
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.
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#2
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Re: Spread between \"heavy\" crude and \"light sweet\" crude
VLO is an excellent company in an strong group... nice addition!
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#3
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Re: Spread between \"heavy\" crude and \"light sweet\" crude
[ 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 [img]/images/graemlins/cool.gif[/img] [img]/images/graemlins/cool.gif[/img] [img]/images/graemlins/cool.gif[/img] |
#4
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Re: Spread between \"heavy\" crude and \"light sweet\" crude
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? |
#5
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Re: Spread between \"heavy\" crude and \"light sweet\" crude
[ 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. |
#6
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Re: Spread between \"heavy\" crude and \"light sweet\" crude
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&...;z=66&y=66 |
#7
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Re: Spread between \"heavy\" crude and \"light sweet\" crude
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.
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#8
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Re: Spread between \"heavy\" crude and \"light sweet\" crude
[ QUOTE ]
So if you are not careful you could be buying in the 80's and watching the stock drop in the short term. [/ QUOTE ] Is your statement based on any kind of analysis other than the fact that stocks can go up and down? |
#9
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Re: Spread between \"heavy\" crude and \"light sweet\" crude
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.
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#10
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Re: Spread between \"heavy\" crude and \"light sweet\" crude
are you the only one who knows of this spread?
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