Western Refining Shares Got Crushed: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Western Refining (NYS: WNR) fell as much as 10% today as pressure hit oil refiners.
So what: Oil is up big again today, rising more than 3%, and has put pressure on refiners today. Another big refiner, Valero Energy (NYS: VLO) , has also been hit hard, so it isn't just a bad day for Western Refining.
Now what: Oil has been cruising higher recently on hopes that Europe will get its act together and the economy will start growing again. Higher oil prices means refiners squeeze less profit from each gallon of gas and profits will in turn be lower. I don't think oil is done running higher and therefore I would avoid buying refiner stocks right now.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.The Motley Fool owns shares of Western Refining. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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