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News  ›  Benzinga

Michael Burry Bets On A Venezuelan Crude Rebound: From 'Short' To 'Sour'

Benzinga Logo Benzinga By Erica Kollmann
Michael Burry Bets On A Venezuelan Crude Rebound: From 'Short' To 'Sour'

Renowned investor Michael Burry is betting on a Venezuelan crude oil rebound following political changes in the country. He believes Gulf Coast refineries engineered for Venezuelan heavy crude will benefit from restored supply, improving operational efficiency and margins. Burry has held Valero Energy since 2020 and plans to hold longer, while also owning Halliburton and considering additional positions. He expects U.S. contractors and oil companies to benefit from infrastructure repairs and resolution of long-standing legal claims.

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VLO   positive

Burry's primary thesis centers on Valero as the main beneficiary of Venezuelan crude supply restoration. He has held the stock since 2020 and is more resolved to hold it longer, citing improved margins from processing heavy crude that Gulf Coast refineries were purpose-built to handle.