Sector Snap: Refiners Up After Report

Tesoro Corp. rose $1.39, or 4.7 percent, to $31.27; Valero Energy Corp. added $1.48, or 3.1 percent, to $49.58 and Holly Corp. gained $1.16, or 2.8 percent, to $42.80.

Refined product inventories declined by 6.9 million barrels, or 1.8 percent versus last week, according to the Energy Department. That represents the largest weekly drop since February 2007.

However, the decline was mostly due to less production and not improved demand, Soleil Securities analyst Jacques Rousseau said in a note following the report. Rousseau expects refiners to further limit production in the coming weeks because of weak margins.

The refining sector has faced pressure from both sides, with surging oil prices and weakening demand from cash-strapped consumers.

Elsewhere in the sector, Marathon Oil Corp. added $1.15, or 2.4 percent, to $48.25; Hess Corp. rose $2.397, or 2.7 percent, to $91.88 and Frontier Oil Corp. rose 50 cents, to $28.36.