Valero Energy cuts costs by $2 billion while complaining of biofuel blending costs of $198 million

In Texas, Valero Energy said during its third quarter financial reporting that costs and expenses fell 8%, about $2 billion, despite its biofuel blending costs doubling to $198 million. For the full year, the company expects costs to be between $750 million and $850 million, unchanged from its last estimate. High fuel inventories are squeezing margins for oil companies, down to $9.07 per barrel from $14.38 per barrel during Q3 2015. Earnings per share for the quarter were set at $1.24 per share compared to Reuters analysts’ estimate of 93 cents per share.