Consumers can easily relate to the impact of crude oil prices, which topped $100 on April 13 but have since fallen back. It means higher prices for gasoline and diesel.
However, the number investors should focus on is $54. That’s the approximate crack spread per barrel. In simple terms, the crack spread refers to the gap between what a refiner pays for crude oil and the price at which it sells the finished product. Historically, that number is between $10 and $20. At $54, the number is high, even for a disruption scenario.
