Source: U.S. Energy Information Administration, from Bloomberg, Thomson Reuters
Principal contributor: Rebecca George
The lowest crude oil prices in several years, robust US gasoline consumption and exports, and higher than expected demand for liquid fuels in Europe and some countries are contributing to the global rise in gasoline cracking spreads.
Gasoline crack spreads in the US, especially on the East Coast, have reached several-year highs in recent months. Crack spreads, which reflect the difference between wholesale product prices and crude oil prices, are a good indicator of refiner profitability.
Note: Dubai/Oman crude oil spot price is the average spot price of Dubai crude oil and Oman crude oil.
In April 2015, wholesale conventional gasoline in New York Harbor averaged $1.79/gal and the Brent crude oil spot price averaged $1.41/gal ($59.39/bbl, divided by 42 gallons per bbl). The difference in prices results in a crack spread of $0.38/gal, the highest...