Refining: Can It Get Any Worse?

News flash: Refining is an awful business. And today's miserable miss by Tesoro (TSO) on its fourth-quarter earnings shows just how bad it is, as it showed a loss of $0.55 a share when the Street expected positive earnings of $0.74. Oops.

One of the great calls I made in 2011 was warning investors away from the refining space late in the year and showing how the very strange and unnatural gap between Brent oil and West Texas Intermediate oil traded on the IntercontinentalExchange (ICE) and the Chicago Mercantile Exchange (CME) was artificially goosing refining margins, particularly in the mid-continent. Any drop in that silly premium was going to weigh heavily on the refining space, and Tesoro used that collapsing spread as a primary reason for its disappointing results....424 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.