Valero Energy (VLO, Financial) (VLO - $43.32 - NYSE) is one of the largest independent re ners in the US with re ning operations along the Gulf Coast, in Canada, and in the UK. Despite its advantageous footprint along the Gulf Coast, VLO was not immune to several issues that a ected the re ning industry during the quarter. ese included as sharply lower commodity prices which led to lower gasoline crack spreads, lower utilization because of a lack of jet fuel demand, and a surplus in diesel fuel. Finally, an announcement late in the quarter by the governor of California that would e ectively ban internal combustion engine vehicles by 2035 dampened sentiment for the group. VLO is a high-quality company which should see a pickup once the North American economy emerges from the COVID-19 recession.
From Keeley Asset Management Corp (Trades, Portfolio)'s Mid Cap Dividend Value Fund third-quarter 2020 commentary.
