Corrected Crack Spread is $265.51 (CAD)? Must be wrong.Yesterday I posted (bottom of post) though I made a HUGE mistake. I left out a barrel of diesel.
Actual Calculation should have been:
158.99 (litres in Barrel) x wholesale price of Diesel (1.67) x 2
158.99 (litres in Barrel) x wholesale price of Diesel (1.67) x 1
Minus $109.51 (WTI USD) x 1.31 exchange rate x 3
Equals $531.03 + 265.51 - $430.37 = $265.51? Must be wrong! If I am not wrong holy cow are they printing money!
"The 3:2:1 crack spread is calculated by subtracting the price of 3 barrels of oil from the price of 2 barrels of gasoline and 1 barrel of distillate." Furnace oil and Diesel have substituted for gas and distilate because they mentioned on the call they are cracking a lot of diesel.
"To determine crack spread you take wholesale price diesel and multiply by 158.99 (litres in a barrel) and then the same for wholesale furnace oil and then divide by 3 times the price of a barrel of oil in CAD.
Diesel and heating oil are both wholesale selling in Toronto for $1.77 litre. Oil is 106 x 1.31 = $138.86
https://www.petro-canada.ca/en/business/rack-prices
Do the math and you get $104.79"