PBF Energy: Biggest Decline in the Refining and Marketing Sector



Refining and marketing losses

In this series on the biggest movers in the energy sector this week, we’ll look now at the stocks with the biggest losses in the US refining and marketing sector. We’ve selected refining and marketing companies with market capitalizations greater than $100 million and average trading volume greater than 100,000 shares last week.

PBF Energy: The biggest decliner

PBF Energy (PBF) is the most-declining stock for the week from the refining and marketing sector. It decreased from last week’s close of $46.69 to $44.24 on June 21, a fall of ~5.3%. PBF decreased strongly on June 20 and 21 on rising volumes. There was no press release from the company this week.

The decrease in PBF is part of the down-move that started after PBF hit a lifetime high of $50.99 on June 4. PBF is down ~13% since then. Currently, PBF is approaching its rising 50-day moving average. As of June 21, PBF is trading at $44.24, whereas its 50-day and 200-day moving averages stand at $42.80 and $33.59.

Moving down: CVRR, VLO, PSX, INT

In the list of decliners for the week, PBF Energy (PBF) is followed by CVR Refining (CVRR), Valero Energy (VLO), Phillips 66 (PSX), and World Fuel Services (INT). CVRR, VLO, PSX, and INT are down ~4.8%, ~3.4%, ~2.5%, and ~1.8%, respectively, so far this week.

On June 13, PSX announced that it plans to expand its Sweeny Hub with 300,000 barrels per day of new fractionation capacity. This expansion is part of PSX’s midstream growth strategy and could cost the company up to $1.5 billion. The project is slated to start commercial operations in late 2020.

In comparison, the Invesco Dynamic Energy Exploration & Production ETF (PXE) is up ~1.5% this week. PXE has ~22% exposure to the refining and marketing industry.

Next in this series, we’ll take a look at the gaining stocks from the integrated energy sector.

More From Market Realist