A diesel hydrotreater and the control room for multiple hydrotreating units at Valero's VLO.N 380,000 barrel-per-day (bpd) Port Arthur, Texas, refinery were destroyed by a March 23 explosion and fire, said three people familiar with plant operations.
Valero Energy is a large U.S. refiner. Supply disruptions stemming from the geopolitical conflict in the Middle East have increased margins in the refining space.
The U.S. produces more energy than it consumes. Yet the price of oil has soared about 70% since Feb. 28 when the U.S. and Israel attacked Iran, according to LiteFinance.
Valero benefits from a long-term structural shift in the global refining market, which supports higher, more durable profitability for efficient operators.
Oil, LNG, refining, shipping, and fertilizer companies could benefit from ongoing disruptions. U.S.-based producers and exporters are among those positioned to outperform due to supply chain shifts.
Energy stocks have fared well as crude-oil prices have shot up, but one other industry group has also done well since the U.S. and Israel attacked Iran on Feb. 28.