VLO - Refining shares rally as vaccine news sparks hopes for renewed fuel demand

Slammed by weakened fuel demand during the pandemic, shares of U.S. oil refiners are skyrocketing after Pfizer announced it had developed a COVID-19 vaccine that was more than 90% effective.[[VLO]] +31.4%, [[MPC]] +16.9%, [[PSX]] +23.8%, [[PBF]] +33.1%, [[CVI]] +31.5%, [[HFC]] +28.2%.Fuel demand in the U.S. is down 13% YTD this year, with motor gasoline consumption down by the same amount, as millions of people shifted to in-home work or lost their jobs altogether."The problem was the product markets and especially the overhang of surplus jet fuel... we believe that's where the vaccine will be most effective," says Credit Suisse refining analyst Manav Gupta.However, today's rally in refining equities likely is "well overdone" and will cool as industry headwinds remain, Tudor Pickering analyst Matt Blair says.Blair notes that refining margins have barely moved on the vaccine news, with Nymex gasoline crack spreads up $0.32/bbl to $6.41 while diesel spreads were down

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Refining shares rally as vaccine news sparks hopes for renewed fuel demand