Fear of EPA Regulations Depresses Refinery Stocks
Red tape strangle an industry? You don't say
Refiners shares continued to tumble for the second day as investors and analysts worried about profit margins in the face of potential stricter regulations.
Valero Energy (VLO) shares lost 5% in the stock market today after falling 5.7% on Tuesday. CVR Energy (CVI) fell 4.7% intraday. Phillips 66 (PSX) shares plunged more than 7%. Marathon Petroleum (MPC) shares were down nearly 7%.
Last week, the EPA said a White House proposal to reduce the amount of sulfur in gasoline and raise auto emission standards would raise gasoline prices by less than a penny a gallon.
Refiners would take on the majority of the cost, and, if passed, the new ruling would have serious consequences to their low-margin business.