Forum Discussion
silversand
Mar 08, 2014Explorer
....with reference to diesel vs gasoline prices over time: take a close look at the Brent to WTI (west Texas intermediate) spread-- particularly lately, as the two start to close in towards parity.
Also, have a look at the crack-spread from 2008 up till today: crack-spreads were in the 50 to 100+ range in the hay-days; today, we're in the realm of negative crack-spreads (this massively affects refiner's margins!). Refiner processing is slowing down; according to the Zacks analyst blog, "refiners are in a funk", as of the writing in late 2013. As light truck owners and users of inordinately large quantities of diesel (and, especially gasoline), watch the "crack-spread" closely!
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Also, have a look at the crack-spread from 2008 up till today: crack-spreads were in the 50 to 100+ range in the hay-days; today, we're in the realm of negative crack-spreads (this massively affects refiner's margins!). Refiner processing is slowing down; according to the Zacks analyst blog, "refiners are in a funk", as of the writing in late 2013. As light truck owners and users of inordinately large quantities of diesel (and, especially gasoline), watch the "crack-spread" closely!
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