321 crack spreads are sustaining mid $30’s, +450% year to date. Brent-WTI spreads are upward of 28% or $24 per barrel and the price of gasoline has declined, substantially, in recent months. Make no bones about it, this is the golden age for the refiners. It’s too bad the fucking stock prices aren’t reflecting it yet.
The best plays are the ones close to Cushing, OK or Eagleford shale, due to the price divergence between WTI and Brent. Recently, EPD announced they were scrapping plans to build a pipeline from Cushing to Houston, something that went unnoticed by the dicksuckers who manage money. What that means, essentially, is sustainable discounts for WTI, compared to Brent, for at least 2 years.
Thanks to the recent decline in gasoline and widening crack spreads, the refiners should be bought in size, in my opinion. The top mid-continental plays, in my opinion, are WNR, CVI, HFC and DK. As you know, WNR is undergoing some deleveraging here and has disappointed with earnings, thanks to aggressive hedging strategies. However, long term, they are doing the right thing for the company. Plus, they still have an East coast refinery up for sale that may boost share price, upon consummation of a deal.
The bottom line: there is no better industry than fleecing the average Joe of his coin at the pump. Margins are wide and times are good. I will be a buyer of WNR on all dips and will look to start new positions, in other refiners, when the opportunity presents itself.
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The Fly is God.
Little TMZ with Mario Lopez while we wait for Friday? No?
Indeud. The EIA had a good piece about oil rig count recently passing the 1,000 mark. Get your fucking straw.
Fly and others, Thought you would be amused by this regarding the China Train Crash, ahhhh Heart Attack? http://www.china.org.cn/business/2011-08/24/content_23274751.htm
Nymph, chillingly similar to the event in London not so long ago. Did the ME report show puncture marks in unlikely places?
Not sure if they even had a ME…ouch.
Cheaper than a trial and jail time.
I hear a lot of Chinese olympic athletes that don’t do too well die of sudden “heart attacks” as well. Might be an east/west divergence in the term. In the East, “heart attack” is generally understood to mean “his heart was attacked with a sharp object or projectile”.
Last time you said that someone was doing the right long term thing for the company was FTK, which exploded to the upside later, much to the chagrin of impatient haters.
Off to devour an idle sandwich…
A bit of Int’l social commentary in a boring market:
http://dotsub.com/view/6474921d-8943-443b-9128-de62aa3b3e54#.TkkzvVEPS5E.facebook
The apple doesn’t fall far from the tree does it? Good to hear someone pissed off put together a well-formed and well-articulated argument.
If the police would use their riot sticks on the rich, who don’t pay their workers enough,
it would do more good. These idiot “job creators” should be able to figure out that
paying decent wages and stimulating DEMAND is in the interests of all.
On second though, just give all of the top 1% sudden “heart attacks” like the Chinese do.
Short your shorts boys and girls the end of the world as we know it is about crack up. Earthquakes all over, Peru the latest. Not concerned? I’m telling you all this fucking fracking is fracturing the earth’s plates that have been in place for billions of years. Now fucking fracking is disrupting the geology of our planet. No small shit, this. Nutcase? Well, ok, but from me to you, frack fucking off.
your as loony as a shit house rat, With all due respect…
Jay, ROFL..I read your comment and was going to argue that you are correct about the Loony, Canadian Dollar..they have a monthly payment right now and I think that is the only thing holding up Oil and the real Looney with the sell off in Gold today imho…then I reread your comment and realized that you were not even talking about the Looney.
TN – we prefer the distaff spelling of Loonie. I sure hope you are right about the aquatic bird, 70% of my sales in $us and I would love to see the Loonie sink.
Thank you JayGu, I have the utmost respect for anyone who really knows respect and how not to show it. An unfamiliar term to most of the prunes down here it God’s waiting room but, I remember ‘crazy as a shit house rat’ being a New Yawk thingy.
This is the life.
Watching Pirates on MLBtv while eating Pringles with some ketchup and some watermelon chunks to quench the thirst.
Keep livin’ the dream, TC…
What dream would that be – that Pringles are food?
I believe “the dream,” as articulated by Ronald Reagan (every Repub on the site just genuflected or ejaculated), is that *ketchup* is food, as he decreed for the school lunch programs of his reign.
And as we know, that balanced the budget*, brought down the Berlin Wall and lead to 1,000 years of U.S. prosperity.
*”Quack! Ronald Reagan taught us that balanced budgets don’t matter! Quack” – Li’l Dick Cheney
What is this — an example of Carter Reflux Disease?
I think Pfizer probably has a purple pill for that.
________
Hmmm, what’s the color of that pill they make for memory loss?
I forget.
watermelon and feta,pffft get it right tc. bulgarian.
Back to buying the dip. Bulltard reporting.
refiners again…. really… paul snider comes to mind
So you’re willing to bet that much capital on the the Jackson Hole outcome? Or are you going to be looking for an early exit off any pre jack rally? Seems like a risky strategy considering if we don’t get the nank’s blessing the downside potential would be swift and strong. Where as if we do get it, the potential for a longer term upside rally is there. US data isn’t that bad, not nearly as bad as flip floppy bear shitter pussies would like us to believe, especially seasonally and that sprinkled with a truck load of coke could result in a strong end of year performance.
was out installing winders, wasnt following a thing today. the flys’ thesis is misunderstood by all. i need a shower. know one is paying attention to whats going on inside the playground,in that location,location,location. my god the chinks are making up fucking names and incorporating in the same fucking spot. duh,,,,,,,……. wake up !!!!!!!!!!!!!!!!!!! thats for alf
This is so great. I always find such interesting stuff when I stumble onto this site again and again!
I’m going to be sharing this. Facebook here we come!