The Most Profitable Business on Earth Today
The Most Profitable Business on Earth Today! If you are thinking it’s lithium mining, then you are wrong. It’s the oil refining business that is minting a crazy amount of profits today! Let us understand! What are 3-2-1 crack spreads? The crude oil is refined into different products like gasoline, fuel oil, diesel, etc. by the refining companies. It’s these end products that we use in our daily lives. To evaluate the profitability of the refining business, analysts calculate 3-2-1 crack spreads. These are calculated as: 1) Buying 3 barrels of crude oil 2) Selling 2 barrels of gasoline 3) Selling 1 barrel of fuel oil The higher the spreads, the more profitable the refining business. What has happened to the 3-2-1 crack spreads? Lately, the 3-2-1 crack spreads have skyrocketed to all-time high levels of $55-60 even though the crude oil has been in a tight range of $100-$120. What are the reasons for the rising spread? Market participants say that multiple shutdowns o...