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HollyFrontier Corporation Message Board

  • zzzplus6 zzzplus6 Oct 31, 2012 11:32 AM Flag

    Crack Spread Data

    Using Bloomberg Market data http://www.bloomberg.com/markets/commodities/futures/ for gasoline, heating oil and WTI, I come up with a $37.01 3 2 1 crack spread. Bloombergs crack spread Bloomberg WTI Cushing Crude Oil 321 Crack Spread/US Gulf Coast shows a $23.14 crack spread. http://www.bloomberg.com/quote/CRKS321C:IND

    Can anyone explaIn this?

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    • I haven't had a chance to do the calculation to see what it currently is, but I've noticed that the Bloomberg website doesn't update their crack spread calc in "real time" anymore. Therefore when you look at it, I believe its what its opened/closed at for the day. Their futures of products do move during the day.

      Also, RBOB is for delivery at NY Harbor and is exploding to the upside do to the physical constraints of delivering the gasoline to the Harbor in the next month. The Bloomberg crack says its US Gulf Coast 321, which implies Gulf Coast delivery (maybe someone else can say where that it), but it isn't going to be effected by the storm is therefore likely falling today due to overall demand decreasing (several majot pipelines deliver product to the NE).

      Neither of these are actually the right calculation for HFC as its in the mid-continent and has different pricing. They can be used as a general guide, but the numbers aren't exact.

      Sentiment: Buy

      • 1 Reply to ewienert
      • I don't disagree with you in general. I just looked at the transcript from CLMT. CLMT was buying crude for its Shreveport facility and paying the Brent price. Bloomberg I would guess is using Brent as the Gulf crude price. This could expain the $10 difference between the Bloomberg crack spread and that which you get when you calculate the crack spread Bloomberg's gasoline and heating oil prices.

        This means that HFC's crack spread remains north of $30 and very favorable to those who are bullish

 
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