Real Money - Energy Stocks in Focus on 'Mad Money' - Valero Looks Promising

January 29, 2019 – Real Money

Energy Stocks in Focus on 'Mad Money' - Valero Looks Promising

By Bruce Kamich

During Monday night's Mad Money program on CNBC, Jim Cramer sat down with Rusty Braziel, president and CEO of RBN Energy for the latest read on the energy markets. Braziel said investors shouldn't fret the instability in Venezuela, as that country only produces a little over 500,000 barrels of oil a day for the U.S.

While the elimination of that oil may be bad news for the likes of Valero Energy (VLO) or Chevron (CVX) , which have refineries dedicated to the heavy oil Venezuela produces, overall, it pales in comparison for the one million barrels a day the Permian Basin was able to add to its production last year alone.

When asked about Saudi Arabia, Braziel noted that the Saudis only have one weapon at their disposal when it comes to oil prices and that's to reduce its production. But when they do that, he said, they lose market share, which makes that weapon very ineffective.

Turning to the topic of natural gas, Braziel said supply and demand are currently in balance, which means any hiccup has the potential to spike prices in either direction. This is due to increased natural gas exports, he said, along with an increase in renewable energy used by power plants, which need to supplement that supply when the sun isn't shining. We looked at CVX the other day, so let's look at VLO today....

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