Feb. 7 (Bloomberg) -- Tesoro Corp., the largest independent refiner on the U.S. West Coast, rose the most in seven weeks after the gap between oil costs and fuel prices widened.
Tesoro increased 4.8 percent to $27.04 at the close in New York, the biggest gain among the four members of the Standard & Poor’s refiners index and the company’s largest rise since Dec. 20. The San Antonio-based refiner has gained 16 percent this year.
The crack spread, the difference between oil costs and the price at which companies sell fuel, rose nearly a third to $28.54 in the past two weeks, according to data compiled by Bloomberg. The discount for crude produced near its North Dakota refinery will boost Tesoro’s profits, said Mark Gilman, a New York-based analyst at Benchmark Co. LLC.
“That’s what’s driving the market,” Gilman, who rates Tesoro a “buy” and doesn’t own shares, said in a phone interview today.
Independent refiners don’t explore for or produce oil.
--Editors: Jessica Resnick-Ault, Steven Frank
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