Suncor Energy Inc T.SU

Record Crack spread $68.74

[lifeisgood1010]

Being invested in SU, i track carefully the crack spread.

The last time i posted it on this board, it was at and all time high

Everytime i think that this can't go higher, it proves me wrong.

Crack spread(The profits that a refiner make by converting oil into gasoline and heating and diesel)

It was $46.22 on March 4th

It's a fonction of the price of gasoline and heating oil vs the price of oil.

Surely, the profitability fluctuate for each refiners depending on the price of the feadstocks
they pay and the price they get for the end products.

But all in all, the calculation of the crack spread will gives you a very good indication of 
the profitability of a refiner.

And right now, they stand a record high and that is BIG TIME RECORD HIGH.

If i look back at my spread sheet that goes back to 2007, i would say that the average spread is in the mid to high teens.

The lowest i have on record is $4.13

Right now, it's at $68.74.It crossed the $50 mark on April 13th and it keeps on climbing.

I don't think these incredible margins are priced in the stock.


 

[Chad123]

What are the crack spreads for Q1? My guesss is an average about $20? No doubt Q2 will be fantastic.

[autofocus111]

I'd say the average is ~$25 in Q1. https://www.energystockchannel.com/3-2-1-crack-spread/

[lifeisgood1010]

My samples gives me $38.26 witch is historically a very high number. Since April, it's $52.57.These are crazy numbers.

[Clemxb7]

Such high crack spreads indicate really high demand for product which means high demand for crude. It does not seem to be slowing down in April. The Weekly Inventories Report yesterday said distilate is 22% below 5 year average at the beginning of drawdown season. That might have something to do with it.

[Bigbear7405]

Don't distilates building during the summer and gas goes down?

[Clemxb7]

Summer is peak driving and flying season so end product demand is high till August. Builds usually occur over the winter. There is a worldwide deficit in distillates. The crack spreads are screaming make more everything!!!!!!!!!!!! (Bloomberg) U.S. refiners are boasting strong quarterly returns as they hone in on near-record high diesel margins despite simmering concern that there won’t be

[mrbb]

just look at the diesel pump price, it's close to 2$/liter in alberta and $2.4 in vancouver, just insanely good (or bad depending which side one is on). On the first pass, light crude yields ~30% diesel/jet fuel while heavy crude yields ~ 21% diesel/jet fuel. However, heavy crude has more heavier ends ~63% which can be hydrocracked, hydrotreated to yield additonal low to ultra low sulfur