SOURCE: Rothman Research

Rothman Research

March 15, 2010 09:13 ET

Oil Refinery Slumps Together With Worldwide Oil Demand

JOHANNESBURG, SOUTH AFRICA--(Marketwire - March 15, 2010) - www.rothmanresearch.com - Weakening distillate margins coupled with narrow heavy crude-oil differentials continue to plague refiners portending poor performance deep into 2010. Refiners were unanimous in their assessment blaming limited supplies of heavy crude since most has been taken off the market because of reductions in production to support prices or natural declines in key sources. "Until global demand warrants supplies return to the market, we look for differentials to remain narrow," explains Mathew Collier, head analyst at www.rothmanresearch.com.

"Global financial and economic crisis are eroding oil and gas demand. The financial crisis in the U.S. has had a domino effect worldwide which in turn may stem the flow of capital expenditure by exploration and production (E&P) companies," adds Collier. Despite the spiraling downtrend, analysts are still hopeful of the industry's correction and recovery in the near term -- alleviated by companies like Valero Energy Corporation (NYSE: VLO) and Western Refining Inc. (NYSE: WNR) who adapted to global corporate strategies to remain afloat even during trying times like today. Direct & free downloadable reports of the intensive research are available by signing up now at http://www.rothmanresearch.com/article/vlo/23294/Mar-15-2010.html or http://www.rothmanresearch.com/article/wnr/23295/Mar-15-2010.html

The grip of the global economic crunch tore a gaping hole in most companies in the sector -- leading some to rather desperate strategic measures to stay afloat. But analysts at www.rothmanresearch.com see the transition as a sign of a strength and versatility for the two companies and foresees a stronger industry once the downturn begins to correct and recover.

Valero Marketing and Supply Company's -- a subsidiary of Valero Energy Corporation -- strategic move to enter into a binding five-year biodiesel Supply Agreement with Mission NewEnergy Limited in December of 2009. The agreement further provides the subsidiary of the Company the right to purchase up to 25% of Mission at AUD0.45 per common share, representing a 61% premium to the current 30 day Volume Weighted Average Price. Register now at http://www.rothmanresearch.com/index.php?id=6&name=Register to view the full report on this company.

The strategic transition of Western Refining Inc. was rather unconventional. On June 05, 2009, the company increased its previously announced public offering of common stock to 20,000,000 shares priced at $9.00 per share to develop liquidity and generate capital for its other projects. Sign up now at http://www.rothmanresearch.com/index.php?id=6&name=Register to access the our analytical report on Western Refining Inc.

Valero Energy Corporation operates as a crude oil refining and marketing company. The company operates through two segments, Refining and Retail. Valero Energy markets its refined products through bulk and rack marketing network, and approximately 5,800 retail and wholesale branded outlets in the United States, Canada, and Aruba under various brand names, including Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, Corner Store, and Stop N Go.

Western Refining Inc. (Western Refining) is an independent crude oil refiner and marketer of refined products, and also operates service stations and convenience stores. The Company operates in three segments: refining, retail and wholesale. Its primary operating areas encompass West Texas, Arizona, New Mexico, Utah, Colorado and the Mid-Atlantic region.

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For More Information Contact:

Matthew Collier

info@rothmanresearch.com

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