From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
A few weeks ago, we pointed out widening crack spreads and what they meant for oil refining stocks. You can read more here, as we explain how wider crack spreads support higher prices for this particular area of the market.
Three weeks later, crack spreads have widened to their highest level in more than a decade.
This post is not about crack spreads, though. It’s about energy and how everything in the space is working these days.
Bullish rotation continues to be the theme for energy.
This week, gasoline was the standout, booking a 10% gain and breaking out of a massive base to new all-time highs.
Let’s take a look at the breakout in gasoline futures and discuss what it means for crude oil.