Keywords
Crack spread * Crude oil price * Gasoline price * Vector autoregression * Impulse response * Macroeconomic factors
During the mid-1980s, the use of
crack spread widely, especially in inner-city New York.
They found that
crack spread predominantly among the most impoverished, disfranchised, and vulnerable segments of the population, while relatively few of their more well-to-do neighbors even experimented briefly with it.
However, he notes that Parkland's stock performance may be impacted by the volatility of the
crack spread, management's ability to generate synergies, and the long-term secular concern of vehicle electrification.
The combination of strong demand and lower refinery production has driven the stocks of distillate fuel oil, which includes heating oil, down to a seasonal four-year low and supported the WTI-Heating oil
crack spread which following an 85% rally since July has reached $30, a five-year high for this time of year.
Summer gasoline demand usually fattens margins for refiners with seasonally high levels for the
crack spread, the premium of a barrel of gasoline over a barrel of crude oil.
The
crack spread, the difference in value between a barrel heating oil and a barrel of crude oil, touched $45.15 a barrel on Thursday.
At least one substantial
crack spread through the brick work raising fears about the safety of the front wall.
However, this was not sufficient to offset the substantial decline in the
crack spread for light distillates, which plummeted to the lowest level so far in 2011, not only due to lackluster gasoline demand in the Atlantic Basin but also weaker demand in the petrochemical industry.
At the risk of oversimplifying a complex story, the short explanation for both of these important
crack spread phenomenon is that diesel supply was simply not able to keep pace with demand.
On Monday, Asian gas oil's January
crack spread firmed to its highest level in nearly 23 months, climbing above $15.00 a barrel, boosted by strong demand for heating oil in the West due to the severe winter.