Crack spreads reflect the economics of processing a barrel of crude oil into oil products. The raw crude oil passes through a catalytic cracker and heat transforms the petroleum into gasoline or distillates. The distillates include heating oil, jet and diesel, and other fuels.
Crack spreads are a real-time indicator of the demand for oil products. While most people do not purchase crude oil, they fill up their automobiles with gasoline, heat their homes, travel on planes or other modes of transportation, or purchase goods that arrive at markets in vehicles powered by fuels. All