Seeking Alpha
  • Financial Insights
    Can someone who knows the oil industry explain to me why HFC looks so cheap? whats with refiners?
    1/3/12
    Reply (11)
    • Larry Smith: The key to refiners is the crack spread, the cost diff between the crude oil that comes in the front door and the rfined product they sell
      1/3/12
    • Rubenov: Look at their projected earnings... declining towards zero. I don't know why though.
      1/3/12
    • Larry Smith: You may have noticed the gas prices have not shot up despite the fact crude is up $10 a barrel. That's because their is a glut of gasoline
      1/3/12
    • Larry Smith: Crude is up, gasoline and other refined products are not, thus refiners are squeezed. With refiners, crack spreads are everything.
      1/3/12
    • anonymous#12: Free Markets forces already forcing some changes....northeast refineries closing....
      1/3/12
    • Financial Insights: thanks guys
      1/3/12
    • Ocean Man: The above is true for refiners, but mid-continent refiners like HFC and CVI behave differently. They shot up this summer because there was
      1/4/12
    • Ocean Man: more supply at Cushing so WTI prices dropped. They were buying at the low WTI price and selling gas based on the higher Brent price. When
      1/4/12
    • Ocean Man: the pipeline COP sold reversed direction, the WTI price came back up towards Brent and the mid-cont refiners lost it all back. I think the
      1/4/12
    • Ocean Man: drop is overdone, and I bought CVI a couple weeks ago and almost bought HFC (wish I had).
      1/4/12
    • Financial Insights: Ocean Man, Thanks!!
      1/4/12