Valero Pivots to Venezuelan Crude as Canadian Prices Spike, Guides Q3 Refinery Runs Above 93%
VLO has more than doubled off its 52-week low of $130.78 on light trading volume (0.2× avg).
Summary
Valero is shifting its crude slate toward Venezuelan heavy barrels after a spike in Canadian crude prices, with processing rates expected to exceed historical highs in coming months. This follows a strong Q2 earnings beat this morning, where adjusted EPS of $12.54 crushed consensus by 24% on robust refining margins. The company guided Q3 refinery utilization above 93.3% of capacity, signaling continued strong throughput. Capex for 2026 is pegged at about $2 billion, while the Port Arthur DHT unit restart will cost roughly $250 million and is expected back by year-end. The operational pivot and bullish volume guidance reinforce the margin tailwind narrative, though the repair costs and heavy crude reliance add some execution risk.
At the time of this announcement, VLO was trading at $309.24 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $91.8B. The 52-week trading range was $130.78 to $320.24. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.