NEW YORK (TheStreet) --Shares of Tesoro (TSO) finished higher by 2.69% to $59.94 this afternoon as the oil refinery industry rebounded from losses it suffered on Wednesday after the Obama administration granted only two U.S. energy companies permission to export condensate to foreign buyers.
After the administration told Pioneer Natural Resources (PXD) and Enterprise Products Partners LP (EPD) they are allowed to sell the ultralight oil that buyers could convert into jet fuel, diesel, and gasoline, investors began a selloff in which Valero Energy (VLO), Marathon Petroleum (MPC), Holly Frontier (HFC) and other refinery stocks took a dive.
Analysts at Cowen Group (COWN) say the selloff was an overreaction and "the spirit of the law - that hydrocarbon liquids produced in the U.S. must be processed in the U.S. - remains in place, and permits for condensate exports do not constitute precedent for crude oil...We continue to see potential for a meaningful feedstock advantage for U.S. refiners emerging later in 2014."
Separately, TheStreet Ratings team rates TESORO CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESORO CORP (TSO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."