Comments on: Largest U.S. refiner Valero now permanently shutting capacity

By: Edward Harrison

Edward Harrison — Sun, 22 Nov 2009 21:34:31 +0000

Warren Buffet has been buying shares in oil companies (principally Exxon Mobil and ConocoPhillips). This suggests he thinks oil is a (long-term?) good investment. Why he is investing and whether these are longer-term bets is still unclear.

By: equityval

equityval — Sun, 22 Nov 2009 21:13:57 +0000

Can you please expand on the Warren Buffett comment? I'm not sure that I follow it.

By: Edward Harrison

Edward Harrison — Sun, 22 Nov 2009 14:34:31 +0000

By: equityval

equityval — Sun, 22 Nov 2009 14:13:57 +0000

Can you please expand on the Warren Buffett comment? I'm not sure that I follow it.

By: Edward Harrison

Edward Harrison — Fri, 20 Nov 2009 13:29:54 +0000

Agree 100%. This is especially true if you believe there are fundamental secular supply/demand imbalances which will re-assert themselves eventually.

By: Dr. Duru

Dr. Duru — Fri, 20 Nov 2009 13:25:41 +0000

In the short-term, yes, this is a deflationary indicator. However, once gasoline demand starts to surge again (as it will eventually), this capacity destruction will cause gasoline prices to rise much faster than anyone might expect. So, I would be more concerned with higher gasoline prices over the longer horizon.