Valero Energy Corp. (NYSE:VLO) stock rose nearly 2% in Wednesday's premarket trading, recovering some losses after the refiner suffered its steepest one-day decline since April 2025.

The rebound came as broader market sentiment improved. Nasdaq futures gained 0.35%, while S&P 500 futures rose 0.22%.

Refining Profits And Sector Selloff

Valero shares plunged 9.24% Tuesday as easing geopolitical tensions raised concerns about weaker refining margins.

Renewed talks aimed at ending the Iran war and reports of Russian diesel shipments returning to the U.S. market after four years fueled the selloff.

Investors fear that increased fuel supplies could pressure refining margins, which have supported the company's strong earnings.

Valero's third-quarter refining margin nearly tripled to $39.24 per barrel, while net income reached $6.8 billion.

Other major refiners also declined Tuesday, including Marathon Petroleum Corp. (NYSE:MPC) and Phillips 66 (NYSE:PSX).

Wednesday's premarket rebound suggests some buying interest following Tuesday's sharp selloff.

The stock's ability to stabilize near its 50-day moving average could help determine whether the recent decline marks a temporary pullback or a broader trend reversal.

Technical Analysis

Valero shares are trading about 7.8% below their 20-day simple moving average (SMA) of $427.34. The stock is also near its 50-day SMA of $394.91.

This suggests that short-term momentum has weakened, although the broader uptrend remains intact.

The moving average convergence divergence (MACD) indicator is below its signal line, with a negative histogram. This signals fading bullish momentum.

However, Valero remains 15.7% above its 100-day SMA of $340.40 and 39.4% above its 200-day SMA of $282.59.

The stock's 20-day SMA also remains above its 50-day SMA, while the 50-day average is above the 200-day average. This pattern supports the longer-term bullish trend.

Traders are watching resistance near $419, followed by the 20-day exponential moving average of $420.89.

On the downside, $365 represents a key support level if the stock fails to hold its 50-day average.

Analyst Outlook

Valero carries a consensus Hold rating, with an average analyst price forecast of $423.43.

Recent analyst actions include Freedom Broker's Oct. 23 downgrade to Sell, with a $276 price forecast. Citigroup maintained a Neutral rating and raised its price forecast to $490. Wells Fargo maintained an Overweight rating and increased its price forecast to $489.

The stock trades at a price-to-earnings ratio of approximately 8.8.

VLO Price Action

VLO Stock Price Activity: Valero Energy shares were up 1.70% at $393.92 during premarket trading on Wednesday, according to market data.