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Indicator Points to Higher Gas Prices - and 3 Potential Power Plays

For those who seem to misunderstand, gas is not oil. When Asian gas prices reduce consumption, Asia will buy less oil. That means more oil supply for the rest of the world. QED, lower oil prices. The American demand for gas will be largely unaffected by the price of oil. QED, wider crack spreads.

Now, gasoline is just one product made from oil. These refineries are producing hundreds of different chemicals that are used in everything from the food you eat to the plastic containers in which they come. Already, the refiners should be swithing over to producing millions of gallons of heating oil for the winter instead of gasoline and diesel fuel. It's important to consider the crack spread on ALL of these chemicals.