From 2019 til the start of the pandemic I was a journalist reporting on the geopolitical issues in Venezuela and have followed issues in the country, since taking an interest in their state oil company and more importantly the American company who the heavy crude native to Venezuela. I don't have a large portfolio. It consistly solely of Valero and the website we're all using Reddit.
Valero has performed well during the Maduro regime and after the shift towards the Rodriguez administration and its efforts in liberalizing the oil sector. Equally or potentially more importantly the tensions involving the closure of the Strait Of Hormuz have benefitted Valero's stock price. Here's some reading on the matter:
The numbers speak for themselves. Valero is up 46.35% YTD and 81.16% in the past year
https://ca.finance.yahoo.com/quote/VLO/
This is not a fluke either. This is how Valero generally performs. The only time I ever had to dump it was during the slump of 2024 which wasn't reflective of Valero. The entire market was down. So for the long haul I've stayed bullish on Valero. 🛢🛢
Valero Energy (VLO) is a good oil stock because they refine PDVSA Venezuelan Crude-Benefitted from closure of of the Strait Of Hormuz
byu/StoopSign inwallstreetbets
Posted by StoopSign
9 Comments
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they have a big ass refinery in my neck of the woods near québec. They hired my son to work there in the summer so yeah, reason enough for regarded to invest.
If you use the term PDVSA, that’s how I know you are legit
Doesn’t that apply to a ton of oil companies?
That’s why I being selling naked puts on them forever
Il y a aussi le français Maurel & Prom mais n’a apparement pour le moment pas d’autorisation pour le commercer
FANG is a good oil stock because it didn’t go down today.
Only catch is VLO isn’t straight oil beta. Refiners live on crack spreads, not just higher crude, so ‘Hormuz gets messy = VLO moon’ can get weird fast.
Sold my position today (about 10k usd). I think they have ran most of whatever upside they had. High Oil prices don’t mean necessarily better business for refineries since they pay more foi oil they distill. You can make the point that products are moving even higher but it depends where you look. There’s a significant amount of refining capacity coming online in 26 and 27, so VLO will compete harder for margins, meaning that unless crude gets very cheap its not looking as rosy as in 2025. More so, anyone talking about upside of Venezuelan crude like its a windfall for some of these refiners is simply misleading you. Very hard to get enough Venezuelan crude to significantly improve margins, and will take years to ramp up production