2 weeks ago

Hidden crack spread indicator hits twice its normal level

Hidden crack spread indicator hits twice its normal level
This hidden energy indicator has climbed to about twice its normal level · financialexpress.com

Have you ever noticed that the fuel your family buys costs much more than the raw oil in the ground?

There is a special number that measures that difference.

It is called the 'crack spread.'

Normally, this number stays around $20 to $35 for each barrel.

Lately, it jumped to about $66, which is about two times bigger than usual.

This happened because a very important water road called the Strait of Hormuz became hard to use.

Lots of fuel used to travel through it, but now there is not enough fuel to go around.

Refineries are also working at full speed, with no room to make more fuel.

The United States released some of its emergency oil, which kept the price of raw oil from rising as fast as fuel.

If the fighting in West Asia eases, fuel prices could start coming back down.

Key facts

3-2-1 crack spread (Aug 13)
$66 per barrel
Normal historical range (Aug 2025-Feb 2026)
$20-$35 per barrel
Crack spread at end of February
$29 per barrel
Crude oil price change (6 months)
up about 50%
Refined fuel cost change (6 months)
up about 67%
Global refined petroleum via Strait of Hormuz (pre-conflict)
about one-fifth
US Strategic Petroleum Reserve drawdown
116 million barrels since conflict start
Current SPR level
just under 300 million barrels (lowest since 1983)

Sources

Related news