CVR Energy delivered strong results for the second quarter 2019, primarily attributable to safe and reliable operations, lower Renewable Identification Number prices, higher
crack spreads and increased fertilizer sales volumes and pricing," said Dave Lamp, CVR Energy's Chief Executive Officer.
"On top of this, refining margins and product
crack spreads have recently been falling, even while crude prices were falling sharply too.
High Volatility Sector: Refining remains one of the most cyclical of corporate sectors, and is subject to periods of boom and bust, with sharp swings in
crack spreads over the cycle.
How will the markets recalibrate, and what does this mean for
crack spreads for petroleum products, oil refining margins, and crude oil differentials?
What can we learn from the history of gasoline
crack spreads?: Long memory, structural breaks and modeling implications.
"We foresee a scramble for middle distillates that will drive
crack spreads higher and drag oil prices with it," wrote Morgan Stanley analysts including Martijn Rats.
Therefore, a large block of graphite surrounded by the crack sheds, as shown in Figure 7, where the
crack spreads downward in the direction of the indentation in the initial stage and then propagates gradually toward the free surface of specimen.
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.
