Oil refiners are tumbling today after the Commerce Department cleared the export of a very light form of oil called condensate after it has been minimally processed.  The concern is that the decision would push up oil prices and put pressure on refiners’ margins. Valero’s (VLO) loss is the steepest in almost three years (August 2011). Shares of HollyFrontier (HFC) are sliding the most since November 2011:

Refiners Tumble

Ticker

Security

Last

Change

%Chg

(VLO) Valero Energy Corporation

50.39

-5.60

-10.00%

(HFC) HollyFrontier Corporation

44.96

-4.01

-8.19%

(MPC) Marathon Petroleum Corporation

79.52

-6.93

-8.02%

(TSO) Tesoro Corporation

57.22

-3.70

-6.07%

(PSX) Phillips 66

80.85

-4.09

-4.82%

On the flip side, oil and gas exploration and production companies, especially those leveraged to condensate like SM Energy (SM), Pioneer Natural Resources (PXD) and Rosetta Resources (ROSE), are rallying:

Exploration & Production Winners

Ticker

Security

Last

Change

%Chg

(SM) SM Energy Company

84.27

4.19

5.23%

(PQ) PetroQuest Energy, Inc.

6.89

0.27

4.06%

(ROSE) Rosetta Resources Inc.

52.90

1.89

3.71%

(PXD) Pioneer Natural Resources Company

229.45

7.80

3.52%

(SFY) Swift Energy Company

12.45

0.41

3.41%