Valero profit soars as demand for refined products tops 2019 levels and supply remains tight

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Valero profit soars as demand for refined products tops 2019 levels and supply remains tight
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If you own stock in the San Antonio refiner, you probably are pretty happy as third-quarter profits soared 400 percent over last year.

this year has widened Valero and other refiners’ profitability and fueled the highest inflation in four decades.nearly 1 million barrels per day less

than before the pandemic, when demand dwindled and refiners closed plants. Amid a quick recovery of domestic demand and strong export demand since Russia’s invasion of Ukraine, refiners have been operating at record levels. Valero’s utilization rate — the amount of oil processed compared to a plant’s rated capacity — was 95 percent in the third quarter, up from 91 percent a year ago. Refining margins more than doubled to $5.9 billion.

The company’s 15 refineries — located in the U.S., Canada and the United Kingdom — averaged daily throughput of 3 million barrels per day, a 5 percent increase from last year. Its refining business reported income of $3.8 billion, up from $835 million. Valero — San Antonio’s largest publicly-traded corporation by revenue — earned $21.34 per barrel of crude oil refined, up from about $10 a year ago.

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