Klesse continued, “Refining industry margins and feedstock discounts in our markets were very strong in the first quarter because of global demand strength and production issues in foreign refineries. In particular, our inland refineries benefited from processing WTI-type crude oils, which have been pricing at a significant discount to waterborne light-sweet crude oils such as LLS and Brent. Combined with our heavy and sour crude oil processing capabilities, more than 80 percent of Valero’s refining capacity can process feedstocks that price below waterborne light-sweet crude oils.”Valero’s retail operating income was $66 million in the first quarter of 2011 versus $71 million in the first quarter of 2010. The slight decline in operating income was mainly due to the narrowing of U.S. retail fuel margins as pump prices failed to keep pace with rising crude oil prices, while Canadian retail fuel margins increased on local demand strength.
Valero Energy Reports First Quarter 2011 Results
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