U.S. Refiners: Recent Trends And Relative Value

Refiners are  most profitable when oil prices are elevated, gasoline demand remains robust, and refiner margins are high. Refiner margins are dependent on crack spread - the difference between the value of the gasoline and diesel produced and the input cost of crude oil. The 3-2-1 crack spread has already nearly doubled this year from $0.65 to $1.65 per gallon of fuel.