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.
refining
crack spreads continued to be challenged by a historically high level of finished product inventories.
There have been broadly comparable improvements in the 5-3-2 and 2-1-1
crack spreads over the same period.
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.
There are a number of common spreads, including
crack spreads, arbitrage spreads, relative value spreads, and time spreads.
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.
The market for all Gulf grades have been supported in recent months by strong
crack spreads for naphtha and middle distillates, coupled with expected peak winter demand for heating oil.
