refining margins crashed

Refining margins crashed all the way back to Feb levels. Never in the last 4 years has there been a crash in crack spread in the middle of July.

Back to FEB margin in the middle of the summer driving season is unheard of I think. What is going on?

 

Does this mean the price of gas will go down?

 

Yes. Wholesale prices are down 15 cents from last week. Even while crude keeps moving up.

Refinery profits getting squeezed 30% in a week.

 

What is the reason? More Asian refineries finally coming online?

 

Short Valero

 

This was a great trade last year. I suspect there are still memories of the big sell off at historically odd months last year.

 

It was a great trade this year, too.

Down from 77 to 63.

 

where do you find info on refining margin? wholesale price?

 

Lilboy, here (daily updates).
http://www.oilintel.com/spothome.cfm?loc_id=7