And entering 2011, crack spreads
are inspiring flashes of deja vu.
The grades have rallied in the past three months as healthy product demand has triggered a sharp rebound in crack spreads
Persistence of weak crack spreads
, escalating costs, and material disruptions in plant production;
Both diesel and jet fuel crack spreads
remained relatively flat during Q2 2011 and slightly below their Q1 levels, as a combined result of slowing but still continuing Asian demand growth, ample middle distillate inventories and seasonal weakness," it said.
Trends in crack spreads
, plant utilization, margins per barrel, and product demand; and
In the Company's refining segment, third quarter results were adversely impacted by a significant decline in the 5-3-2 Gulf Coast crack spread
in the period.
Heavy crudes are richer in fuel oil and traders use the crack spread
as a barometer for the value of these grades.
However, significant increase in crude oil prices has the potential to slow down global demand growth, which could also adversely impact global crack spreads
US gasoline futures crack spreads
, an indication of refining profits, remain at seven-year seasonal lows as inventories hover above the five-year average.
The positive performance of the middle of the barrel, amid stronger demand and falling inventories, allowed gasoil crack spreads
to show a sharp recovery.
The crack spreads
into a quake by Thursday, for it is weekend eve and DEAR GOD JUST GET ME A FUNNEL AND SOME WHITE WINE.
Strong gasoline demand ahead of the US driving season lent support to crack spreads
at the top of the barrel; however, middle distillates were pressured by higher refinery runs in the US Gulf Coast amid increasing inflows from Europe.
The Energy Department said so-called crack spreads
- the difference between wholesale gasoline prices and crude-oil prices - were identified by its Energy Information Administration (EIA) as accounting for more than 60 percent of the recent price increase.
Traders are divided over whether the Saudis will make the unusual move of offering steeper discounts to Asian refiners to sell more and cool down global energy costs, or simply track routine market fundamentals such as crack spreads
for naphtha, gas oil and fuel oil for pricing purposes.
He did not say whether he was referring to overall crack spreads
or to a specific refined product.