HOUSTON, July 23 Valero Energy Corp, the
largest U.S. independent refinery, expects narrowed discounts of
light and some heavy sour crudes to others to widen again,
leaving rail as a viable option for moving oil, an executive
said on Tuesday.
Chief Operating Officer Joe Gorder said on a call with
analysts that Valero's leased railcars "provide us a hedge on
the downside" when narrowed spreads squeeze make moving crude by
rail less profitable as such transporation is more expensive
"But we fully expect these markets go back to a more normal
pricing," Gorder said. He said those spreads will widen as more
pipeline capacity comes online to move Texas crude to the U.S.
Gulf Coast and increased production stabilizes crude draws from
the U.S. crude futures hub at Cushing, Oklahoma.