Neil Singhvi Mehta's questions to VALERO ENERGY CORP/TX (VLO) leadership • Q3 2025
Question
Neil Singhvi Mehta asked about Valero's insights into the significant volume of crude on the water, its likely destination (OECD vs. China), and its potential as a catalyst for widening crude differentials, specifically mentioning Iraq. He also sought an update on the performance of Valero's non-refining businesses, particularly the sustainability of ethanol margins and the path to profitability for Diamond Green Diesel (DGD) post-RVO.
Answer
Gary Simmons, Executive Vice President and COO, confirmed an increase in Iraqi crude barrels (Basra and Kirkuk) flowing to the US, while most other barrels are directed to Asia. Eric Fisher, Senior Vice President Product Supply, Trading and Wholesale, stated that ethanol's outlook remains positive due to a record corn crop, strong domestic and export demand, and global E0/E10/E15/E20/E30 transitions. For DGD, he noted that recent softening of fat prices has led to positive EBITDA, but challenges remain for 2026 with PTC changes and RVO policy uncertainty.