Most troubling for refiners amid a two-day rout: Crack spreads have tumbled recently, with...


Most troubling for refiners amid a two-day rout: Crack spreads have tumbled recently, with gasoline at a premium of $29.81/bbl to WTI today; it was $33 a week ago. As Bloomberg notes, the narrowing is due to a decline in gasoline prices, which hurts refiners: "People are factoring in some refineries coming back online, and we’ve yet to see any pick-up in demand,” one analyst says.

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Comments (7)
  • deercreekvols
    , contributor
    Comments (8610) | Send Message
     
    A great day to be buying refineries.
    Tier III takes effect in 2015, if I am not mistaken.
    Plenty of room to run for this group.
    3 Apr 2013, 05:39 PM Reply Like
  • CincinnatiRick
    , contributor
    Comments (660) | Send Message
     
    Yes, the refiners have to meet the California standard (average 10 ppm yearly) beginning January 1, 2017. Firstly, a lot can happen between now and then and secondly, this is a proposed standard.
    3 Apr 2013, 07:58 PM Reply Like
  • zorro2828
    , contributor
    Comments (721) | Send Message
     
    I thought it was 2017... And they are only at the proposal stage
    3 Apr 2013, 06:32 PM Reply Like
  • Continental Kid
    , contributor
    Comments (238) | Send Message
     
    I agree...way over done on selling....long VLO and PSX....both still trading at 10 P/E's.....paying dividends.......HFT guys pushed down and hit a lot of stops over the las two days...we'll see ...VLO earnings on 30 Apr...1 May for PSX....concerned on the downside... but added to position with cheaper calls today
    3 Apr 2013, 07:19 PM Reply Like
  • DianeLee
    , contributor
    Comments (368) | Send Message
     
    The EPA is also trying to push thru regulations reducing sulpher content. (note: self-edited this comment many, many times. ;)
    3 Apr 2013, 08:32 PM Reply Like
  • poclerk
    , contributor
    Comments (427) | Send Message
     
    I am the dumbest guy in the room, but isn't this ''crack spread'' issue significantly mitigated through hedging?
    4 Apr 2013, 05:32 AM Reply Like
  • USER 45182
    , contributor
    Comments (41) | Send Message
     
    Look at NTI. 20/20 Off 20% yields 20% Around $26.00 now off from $30.00 Not for widows and orphans.
    Carter
    4 Apr 2013, 04:30 PM Reply Like
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