Concluding Thoughts
As crude oil prices have rebounded, the 3-2-1 crack spread is currently near an unprecedented $25 per barrel as crude oil prices surge. Throughout 2011, the crack spread environment has been very supportive, reflecting positive crack spreads most of 2010 and into 2011. Many independent refiners have posted increases in quarterly earnings on the heels of higher crude prices and increased demand for crude and refined products. Improvements in the global economy are certainly benefitting the refiners. At the same time, integrated majors are increasingly taking the position to rationalize refining assets. The refining industry is still not operating at pre-2008 levels. Therefore, we expect continued divestitures of unprofitable ...
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