Article: Valero Moves Boost Residual Oil Market.

Reshaping the Basis Petroleum Inc. operations it acquired this spring, Valero Energy Corp. has throttled back on distillate bulk sales into the East Coast and has chopped residual oil production.

But because Valero is an expanding, aggressive competitor in East Coast wholesale markets, its cutback on bulk or spot-market sales there may not be noticed by many people.

The company's reduced resid output is more likely to be felt.

Valero completed its acquisition of Basis, a subsidiary of Salomon Inc., on May 1. Both companies were refiners and wholesalers, and part of Valero's task has simply been the folding of Basis wholesaling operations into ...

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