Here's Why Retain Strategy is Apt for Valero Energy Stock Now

Group 1 - Valero Energy Corporation (VLO) has gained 8% year to date, outperforming the 1.4% rise of the industry composite stocks [1] - Valero operates 15 petroleum refineries with a combined throughput capacity of 3.2 million barrels per day across the U.S., Canada, and the U.K. [2] - The Renewable Diesel business segment, particularly the Diamond Green Diesel joint venture, is benefiting from global low-carbon fuel policies, driving demand for renewable diesel [2][3] Group 2 - Valero's refining operations are resilient in a carbon-constrained environment, generating significant cash flows for shareholder returns and growth projects [3] - Input costs for Valero are highly volatile due to fluctuating crude oil prices, which poses a risk to its business [4] - Competitors such as Marathon Petroleum, Phillips 66, and ExxonMobil also face similar exposure to oil price volatility, with ExxonMobil having a distillation capacity of approximately 5 million barrels per day across 21 refineries [4][5]