Tesoro Shares Popped: 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 Tesoro (NYS: TSO) jumped 14% near the end of trading Wednesday as oil prices rose and the market bet on an economic recovery.
So what: The price of oil has climbed 5% today as investors bet that the economy may not be in as bad shape as we thought after all. The company also announced that it plans to start construction on expanded refining capacity in North Dakota this fall.
Now what: The Mandan expansion will add 10,000 barrels per day of capacity to a refinery that can already process 58,000 barrels per day. The plant is in a growing region of the Bakken shale where production has expanded exponentially in the last few years. This helped drive shares today, but a big part of the move was the oil tides lifting all oil companies' shares higher.
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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.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.