Crack Spreads Ripping Higher

After advancing all last week, crack spreads are strengthening again this evening, now up more than 3.2% to $24.10. Disruptions in oil supplies, coupled with loss of refining capacity in Japan, has created an environment where refining margins have exploded to the upside.

Typically, spreads widen this time of year anyway, as the driving season kicks off.

NOTE: Crack spreads were $12 in the beginning of 2011.