Valero Energy's stock surged 5.03% during intraday trading on Tuesday, significantly outperforming the broader market.

The rally occurred as the energy sector gained broadly, with oil prices edging higher. Market participants were weighing the global supply outlook and the possibility of a de-escalation in U.S.-Iran tensions, which supported crude benchmarks and energy equities.

Specifically for refiners, Valero was noted alongside peers as having purchased Venezuelan crude. U.S. refiners are widely expected to benefit from renewed efforts to boost output from Venezuela, providing access to additional heavy oil supplies. Furthermore, analyst sentiment remained positive, with Goldman Sachs recently adjusting its price target on the company upward.