Crack spread are mind-blowingI have been calculating 3-2-1 crack spread since 2007.
The crack spread at the close is mind-blowing.
It stand at $40.98.I have never seen them that high.
The highest i have ever saw them was on March 7th 2013.On that day they hit $38.61 and
the WTI was at $91.48 and the CAD$ was .9722.So in CDN terms the WTI was at $94.10
At the close the WTI in CDN term is at $140.88.So Suncor is winning both on it's upstream and on it's downstream business.
When Suncor hit it's all time high at over $70,the WTI was also in CDN term trading in the
$125 to $148.The big difference with today is the crack spread.
The crack spread at that time (June and july 2008) was very low (in the $9 to $11).
Right now the refining margin have never been that high
I wonder how many investors are aware of how much Suncor is profitable at this moment?
How long will these price last is anybody's guess?But for now, they are making money like never in the history of the company.
Also, now the production is almost 3 time greater than in 2008 when the SP hit an all time high of $70+
Something as got to give.Either we see a crash in the price of oil or we see a substantial increase in the selling price.
I am in the camp that we see a much higher SP in 2022.
Time will tell