Jim Cramer Says Refiners Like Valero as Potential Winners From Venezuelan Oil

Valero Energy Corporation (NYSE:VLO) is one of the stocks Jim Cramer offered insights on. Cramer highlighted the company while discussing the opportunity for US refiners, as he stated:

“The US refiners, especially Valero, may be a big beneficiary of that oil because they still have refineries that can handle what’s known as heavy crude. That’s what Venezuela produces. Valero, Phillips 66, and Marathon Petroleum could be big winners in the US, but only if they can divert that oil to the Gulf. Who knows? Venezuela’s oil infrastructure is a mess, though.”

Valero Energy Corporation (NYSE:VLO) produces and sells petroleum-based and low-carbon fuels, including gasoline, diesel, jet fuel, renewable diesel, and ethanol, along with petrochemical products and co-products for animal feed. RS Investments stated the following regarding Valero Energy Corporation (NYSE:VLO) in its third quarter 2025 investor letter:

“Valero Energy Corporation (NYSE:VLO) is a multinational manufacturer and marketer of liquid transportation fuels. The company owns 15 petroleum refineries in the U.S., Canada and the U.K. and 12 ethanol plants in the U.S., and it is a joint venture partner in an operation producing renewable diesel. Given the capital intensity of the business, VLO focuses on optimizing its return on invested capital and producing strong free cash flow through a business cycle. In the third quarter, the company produced strong shareholder returns for a few reasons. First, it operated its assets exceptionally well and returned excess capital to shareholders. Second, the company has a structural advantage through U.S. natural gas which allows the company to have a lower cost base relative to many refiners in other parts of the world. Finally, recent industry consolidation and the closure of high-cost refineries in the United States have resulted in additional economic value accruing to Valero. We continue to hold VLO and believe that the shares will provide additional outperformance for our funds.”

While we acknowledge the potential of VLO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.