Valero Set to Benefit From Middle East Disruptions; Increasing Fair Value

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage due to its system of 15 refineries that are more complex than those of its competitors, allowing it to process lower-quality feedstock into a high-value product. With the emergence of domestic light crude discounts, it pivoted to processing greater amounts of high-quality discounted domestic crude by substituting domestic for imported crude, constructing additional light crude processing capacity, and investing in transportation infrastructure.