321 crack spreads bloomberg

Crude Oil Gold 1, Silver CMC Crypto 1, FTSE 7, Nikkei 28, Read full article. Ingrid Pan, Sr Energy Analyst. July 26, , PM. Story continues. Recommended Stories. Yahoo Finance Video. Motley Fool. Insider Monkey. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Let us know what type of fuel or service you need and a team member will get a quote to you quickly. Get a Quote. View Current Issue. Mansfield Fleet Management Webinar Winter Fuel Challenges Learn how to address fleet challenges during winter and what diesel treatments offer optimum protection. Exploring Crack Spreads. View Natural Gas News Articles. Previous Article Week in Review — March 12, Contact Mansfield: Higher oil prices also push gasoline prices higher because crude oil is the main input for gasoline.

All of the products have their own unique demand drivers. For example, jet fuel is in higher demand during the summer when more flying occurs. Kerosene burns in portable space heaters, stoves, and water heaters.

As a result, kerosene is in higher demand in the winter. Diesel is another common fuel used for vehicles. Like gasoline, diesel is in higher demand during the summer driving season.

Home heating oil or light fuel oil is in higher demand during the winter. More refining capacity online—more refineries running—can depress refining cracks. Higher refining capacity online results in more competition to supply the marketplace with finished fuels. During extended periods of low crack spreads, the least profitable refineries might be forced to shut down, which helps rationalize refining capacity and rebalance the market.

The turnaround usually decreases the refined product supply, which increases the industry refining cracks. Product supply shortages resulting from serious disruptions such as hurricanes or other refinery or pipeline outages can cause large spikes of short duration. Cracks and oil spreads help determine refinery earnings.

Refining stocks tend to be higher beta than other energy stocks. Usually, refiners have higher betas than integrated energy companies. However, Phillips 66 PSX , with its diversified earnings model, has a lower beta of 1.

Integrated companies have an upstream and downstream asset base, which partially shields their earnings from volatile business conditions. Revenues generally the amount received from finished products depending on the price at which the finished products sell multiplied by the volume of finished products.

Less direct operating expenses like natural gas used for fuel, chemicals and catalysts, and utilities. Directionally, where the crack trades should also indicate how strong earnings should be and where refiner stocks should trade. Marathon Petroleum publishes various factors, which make up the refining and marketing margin indicator, per month. The factors include a blended crack, sweet prompt differential, sour prompt differential, and market structure. Notably, earnings depend on various factors.

There can be a significant difference in earnings. Finally, divide the result by 3 to produce a crack spread in dollars per barrel. Because the crack spread is a product of the interplay of three commodity prices, each subject to different but interconnected supply and demand balances, the range of values can vary widely.