Valero Energy's $300M Volume Ranks 407th as Chevron Pact Revival Fuels 166% Liquidity Strategy Gains

Valero Energy (VLO.N) rose 1.33% on August 5, with a trading volume of $300 million, ranking 407th in the market. The stock’s performance coincided with renewed supply discussions between Valero and Chevron (CVX.N) to reactivate a Venezuelan crude oil agreement. Three sources indicated that Chevron, granted a U.S. license to operate in Venezuela, is negotiating terms with Valero to resume cargo transfers from Aruba to Valero’s U.S. refineries. This collaboration could restart ship-to-ship operations as early as this month, pending inspections and contract finalization. The deal, previously supplying 50,000 barrels per day of Venezuelan crude to Valero, is critical for Chevron’s Petroboscan venture due to storage constraints.

The potential resumption of shipments aligns with Chevron’s plan to resume oil exports this month. Valero’s refineries rely on the heavy crude from this partnership, which accounted for 20% of Chevron’s Venezuelan exports in the first quarter. The agreement’s revival could stabilize Valero’s feedstock supply while supporting Chevron’s operations in Venezuela. However, both companies have not yet commented publicly on the negotiations or timelines.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, surpassing the benchmark’s 29.18% by 137.53%. This highlights the impact of liquidity concentration on short-term stock performance, particularly in volatile markets. High-volume stocks often reflect strong investor interest, enabling liquidity-driven strategies to capitalize on market movements effectively.