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3-2-1 Crack Spread. The 3:2:1 crack spread calculation starts with the spot price for two barrels of gasoline, added to the spot price for one barrel of heating oil, and then subtracts the spot price for three barrels of WTI crude oil.
The 3-2-1 Crack spread approximates a theoretical refinery crude yield that produces two barrels of gasoline and one barrel of diesel for every three barrels of crude input. In other words, the simplified refinery yield implied by this calculation is two-thirds gasoline, one-third diesel.
The 3:2:1 crack spread approximates the product yield at a typical U.S. refinery: for every three barrels of crude oil the refinery processes, it makes two barrels of gasoline and one barrel of distillate fuel.
Jun 2, 2011 · A 3:2:1 crack spread reflects gasoline and distillate production revenues from the U.S. refining industry, which generally produces roughly 2 barrels of gasoline for every barrel of distillate. 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.
Jul 26, 2013 · The crack spread represents the price difference between the finished, refined products (which translate into refiner revenues) and the price of crude oil (one of the primary factors in refiner...
Feb 23, 2021 · A crack spread is the spread created in commodity markets by purchasing oil futures and offsetting the position by selling gasoline and heating oil futures.
May 16, 2022 · The 3:2:1 crack spread measures the difference between the purchase price of crude oil and the selling price of finished products and is an indicator of short-term refining profits or just the refiner's appetite for crude in general.
