Will Brexit Affect Valero’s U.K. Refinery?

Author: USGI
Date Posted: June 28, 2016 Read time: 1 min

Sergio Chapa with the San Antonio Business Journal (SABJ) writes that it’s business as usual for Valero Energy’s Britain-based refinery following the U.K.’s vote to leave the European Union last week. Valero, a San Antonio-based petroleum refiner, bought the Pembroke Refinery in Wales, along with related assets, from Chevron back in 2011.

Sergio Chapa with the San Antonio Business Journal (SABJ) writes that it’s business as usual for Valero Energy’s Britain-based refinery following the U.K.’s vote to leave the European Union last week. Valero, a San Antonio-based petroleum refiner, bought the Pembroke Refinery in Wales, along with related assets, from Chevron back in 2011.

Head Trader for U.S. Global Investors Michael Matousek weighs in on how the Brexit could affect Valero’s refinery. “I don’t think it will hurt them materially,” he told the SABJ, explaining that although crude oil and refined products are traded in U.S. dollars, a weaker British currency could mean short-term savings on the operations side – while American buying power in the U.K. will increase. Britain’s currency fell dramatically following the official Brexit announcement.

 

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Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of 03/31/2016: Valero Energy Corp.