Tesoro Corp

US on-highway diesel fuel prices rose by 2% and were at $2.02 per on March 7, 2016. The current diesel prices are 46% lower than they were a year ago.

Natural gas is used as heating fuel in 48% of the homes across the country, electricity is used for heat in 38% of homes, and the rest of the fuels are used for heat in the remaining 14% of homes.

Crude exports account for more than 85% of Saudi Arabia’s revenue. The economy still isn’t diversified. Saudi Arabia is already experiencing high fiscal deficit.

The benchmark US Gulf Coast 3:2:1 crack spread fell ~12.50% last week. It hit ~$13.28 per barrel on Friday, November 13, 2015.

The recent rise in the crack spread is driven by factors like low crude oil prices, a rise in demand for gasoline, and a sharp rise in demand for propane.

August WTI crude oil futures contracts fell by $0.74 and closed at $50.15 per barrel on July 20. Brent fell by $0.45 and settled at $56.65 at the close of trade.

Gasoline demand increased from ~8.61 MMbpd to ~8.91 MMbpd last week. Gasoline inventories remain outside the five-year range despite the draw in inventories reported on Wednesday.

Distillate demand drives crude demand and crude prices. So, energy investors watch distillate inventories closely.

Shell Midstream Partners (SHLX) has a 42% ownership in the Zydeco pipeline, and Shell Pipeline Company, or SPLC, owns the remaining 57% interest.

Location-advantaged refiners like Valero Energy (VLO), Phillips 66 (PSX), and Marathon Petroleum (MPC), with refineries along the Gulf Coast, can export refined products.

Tesoro’s activities at the cash flow from financing level have been both a source and a destination for Tesoro’s cash over the years.