Today 1:58 pm
The Crack Spread is the differences in prices of the components of the refining process...TwoIfByTea » Today, 9:39 am » wrote: ↑ Ya talking about a "Refinery"
So much each barrel of oil is Gas or Diesel fuel.
The remaining is byproducts or chemicals make stuff like Plastic outta that also Tar and Blacktop
The greater the spread, the greater the incentive to refine further....this means that even though diesel is low on the ladder, it may not be produced in sufficient quantities because it is more profitable to spit out jet fuel and propane.
Tighter supply raises the price - regardless of the price of oil.