Diesel is taking the wheel of the refining barrel. As we discussed in this week's Tradeview Report, the benchmark 3-2-1 crack spread edged just $0.52/bbl higher last week to $66.36/bbl, but that modest headline move masks a much more dramatic shift underneath.
Last week, as in many prior weeks, the focus was the strength of the diesel crack. After flirting near triple digits for a number of weeks, diesel cracks finally broke through the barrier, soaring to a record high of $105.66/bbl and closing above $100/bbl three days in a row.
Week-over-week, diesel cracks rose 5% to end Friday at $98.22/bbl (far right of purple line in chart below). Meanwhile, the gasoline crack fell 3% to $50.42/bbl, leaving the middle of the barrel firmly in the driver’s seat, and more than strong enough to offset weaker gasoline economics.
