# Valero COO Expects Crack Spreads to Recover From Recent Pressure

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/38998
Published: 2026-10-23T13:22:27.000Z
Updated: 2026-10-23T13:22:27.000Z
Section: Business

> Valero's reported refining margin rose to $39.24 per barrel of throughput from $13.14 a year earlier, while Gary Simmons gave no timetable for a recovery in crack spreads.

Valero Energy Executive Vice President and Chief Operating Officer Gary Simmons expects refinery crack spreads to recover from recent pressure, while the company's reported refining margin rose to $39.24 per barrel in the third quarter.

Simmons made the remarks on Valero's Oct. 22 earnings call, which began at 10 a.m. ET (14:00 UTC). He linked some downward pressure on crack spreads to headlines about strategic-reserve releases and Russian sanctions. “I think we will see a recovery in cracks moving forward,” Simmons said. He did not give a target or timetable for the recovery.

Crack spreads compare crude oil costs with wholesale prices for refined products and indicate market conditions for refiners. They are separate from Valero's company-reported refining margin, which was $39.24 per barrel of throughput in the third quarter, up from $13.14 in the same quarter of 2025. Refining segment operating income was $8.8 billion, compared with $1.6 billion a year earlier, and average throughput was 2.972 million barrels per day.

Market benchmarks also showed higher spreads during the quarter: average gasoline crack spreads more than doubled year over year, while distillate and jet-fuel spreads nearly tripled. Tight global supply contributed to the elevated levels. Those benchmarks describe market conditions and are not Valero's reported refining margin.

Simmons said Valero saw no signs of demand destruction. The company's U.S. wholesale network averaged gasoline sales 4% above the year-earlier level over seven days, and Simmons described export demand for gasoline and diesel as strong.

President Donald Trump's Oct. 5 order directed the Treasury Department to determine whether diesel tax relief was legally authorized and which taxpayers qualified. The specified tax payments would be deferred only if Treasury made those determinations. The order also directed Treasury to have the Internal Revenue Service (IRS) announce specified penalty relief for dyed diesel sold for highway use or used on highways during the period from Oct. 5 through Dec. 31, 2026.

On Oct. 9, the Treasury Department's Office of Foreign Assets Control (OFAC) issued General License 135. It authorizes transactions related to the sale, delivery, offloading and importation of diesel fuel of Russian origin.