From January as Saudi is going to follow its own pricing structure for heavy crude , Valero is one of the few refiners with the technology to distile log-grade high sulfur crude into final product. It is going to make high profits.
Valero with its key acqusitions and timely partnership with austrlain firm to buy bio-fuel will produce 10-15% ethanonel contained gasoline with very high margin.
16.60 current price is very good bargain , once high investment bankers run this stock, short sellers will run for the covers, which will inturn drive the prices higher. Whoever has shorted from $20 price will be forced to cover their position.
My prediction will be reaching to 20$ with 5 weeks timeframe.
Klesse said: "We really are refiners of petroleum but we believe that ethanol is part of the fuel mix. You should not be surprised to see us continue to look for opportunities," but declined to offer any specifics on upcoming deals.