Options 'exhausted,' Valero shuts refinery

The battered U.S. refining industry lost another victim yesterday as Valero Energy Corp. announced it is permanently shuttering its high-cost Delaware refinery, as the sector continues to struggle with weak demand and overcapacity. San Antonio, Tex.-based Valero is North America's largest refiner, processing about three million barrels of oil per day. Because it does not produce its own crude, it is squeezed by rising oil prices and weak demand for gasoline and other petroleum products. The company said yesterday that it had searched for a buyer for the 190,000-barrel-per-day complex in Delaware City, which typically processes heavy crude oil imported from the Middle East and Africa. "We have sought a buyer for the refinery, but feasible opportunities have not materialized," company chairman Bill Klesse said. "At this point, we have exhausted all viable options." The company said the plant was losing $1-million (U.S.) a day; its closure will throw about 550 employees out of work. VLO (NYSE) gained 11 cents to $16.47.

TODAY

The economy

Ottawa aiding India in Mumbai massacre probe

New Delhi authorities seek information on Canadian charged in Danish plot, a man they believe was also involved in deadly bombing

Shoppers tight-fisted in sluggish economy

Until jobs rebound, observers say, U.S. wallets will remain shut, though some retail gains were noted yesterday

Currency rift casts shadow on Obama's hopes for strengthening U.S. trade with China

Increasing global frustration over China's currency waffling threatens to overshadow U.S. President Barack Obama's trade agenda as his first presidential visit to Asia gets under way.

Two is the loneliest number

Talk of a U.S.-China G2 ignores previous flawed attempts by the two economic superpowers to sort their differences out on their own

Konrad Yakabuski

Americans expected more from Obama

kyakabuski@globeandmail.com

Khadr to stand trial at military tribunal

U.S., Canada embracing Bush-era disdain for justice in trying to find a forum to guarantee conviction, critics say

Men charged in Danish plot probed for roles in Mumbai massacre

Indian officials suspect two North Americans of Pakistani origin may also have scouted out targets for the terrorists

Retail

Wal-Mart's lopsided global comeback

Retailer posts profit increase as international sales offset losses and deflation in 'anemic' U.S. market

Unofficial U.S. jobless rate could be as high as 20%, Reich says

A 10.2-per-cent U.S. jobless rate sounds terrible. The reality may be even bleaker.

E-COMMERCE / FREE SHIPPING OR ELSE

Online shoppers beginning to expect it, even as growth of e-commerce falters

Tobacco

Down to the last cigarette - and beyond

Tobacco company Reynolds American reportedly in talks to buy Swedish maker of products to help smokers kick the habit

G20's policy cohesion beginning to fray

It started well with countries ranging from U.S. to India vowing unity, but the old squabbles of taxes and regulation are emerging

In aftermath of massacre, town displays stoicism

As investigators continue to pore over scenes of carnage at Fort Hood military base, there is little public outpouring of grief

Generous final acts, and then cold killings

A paradoxical portrait emerges of a man who helped others before opening fire. 'I can't believe he would do this'

Accusations and denials

The allegations

THE LIST / U.S. HEADWINDS

National Bank Financial offers these reasons why the U.S. is condemned to 10 years of slow economic growth:

Easy money trumps inflation fears at Fed

Decision to leave key interest rate near zero shows central bank more concerned with spurring growth than pricking asset bubbles

IT'S A BIG DAY FOR ...

... Sergio Marchionne