The “CRACK SPREAD” is the difference between the Brent Crude price ( World ) and the WTIC price ( Domestic ). US refiners take domestic crude, refine it into value added components, and then sell those products world wide. The crack spread is a good proxy for the ability of refiners to make healthy margins on their refined products.
After bottoming out in Jan 2016, the spread was steadily increasing until Jan 2018 when there was a swift pull back. That spread is now quickly moving to the upside toward the January highs. All the Refiners have been ripping.. Here are the key names to keep on your watchlist. $ANDV $PSX $VLO $HFC $PBF $MPC