Valero falls with peers after U.S. widens oil export potential, levels to watch The stock gapped down along with its peers after news the U.S.plans to widen exports of oil. The concern is that having to compete with foreign buyers for crude may increase the cost basis for refiners and lower profits. At the current price of $50.86, shares are not trading far from the low of the day at $50.15. The $50 level is an important one for the shares as a move below would confirm a major top in share price as most clearly seen on a 1-year daily chart. Resistance is at $51.89.
Valero downgraded to Underperform from Neutral at BofA/Merrill BofA/Merill downgraded Valero to Underperform and raised its price target to $68 from $64. The firm believes the Refining sector has reverted to a trading sector and downgrade shares ahead of a seasonal slow-down in demand and a deteriorating macro backdrop.