By Jeff Pierce

I’ve been noticing this disconnect between oil & gas refining and marketing stocks over the past few weeks but in didn’t seem so “in my face” until tonight. I think it had to do with so few results on my screeners tonight due to my volume requirement that they stood out, but this is just odd how this sector is performing so well with crude being under pressure as of late. I won’t be placing any trades in this sector as these chart patterns don’t fit the ones I trade, but I thought I’d point it out.

Updated: Received this comment via twitter that should shed some light on this.

@zozotrader1 –  Hi Jeff for refiners it has something to do the the crack spread en.wikipedia.org/wiki/Crack_spr…

wtic


One Response to “Crude Down, Refiners Up?”

  1. chris buss Says:

    refiners make money selling refined products based off the brent price, while using WTI as feedstock. Therefore the higher the WTI / Brent spread, the more profit margin is available. n the past months, this spread has expanded to over $18/ barrel

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