Gasoline and diesel have stayed flat, and missed the ride up that crude has taken in this last crude spike.
To me, the gap is a warning flag that either crude is overbought, or product prices have yet to catch up. There are many reasons why this happened on either side.
On Aug 25, 23, the 321 crack spread was at $US 47.01. A month later, it is now at $US 23.06.
1 Year 321 Crack Spread vs Oil Price:
It is the same scenario with oil stocks, as crude has outpaced the price rise of the oil producers.
However, it is arguable that crack spreads are merely returning to levels seen before on a historical basis, averaging just under $US 20.00
10 Year 321 Crack Spread vs Oil Price: Of course, this large drop in the 321 crack spread impacts the profits of those with refineries, like Suncor.