Crack Spread

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Crack Spread

A spread involving oil futures. In a crack spread, an investor takes a long position in crude oil futures and a short position in refined oil futures. This allows the investor to create an artificial position on the price of refining oil. Refineries are the most likely investors to enter into a crack spread. See also: Crush spread.
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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.