Here is Jinjoo Lee, Wall Street Journal, on crack spreads:
”While global demand for petroleum products—ranging from gasoline and diesel to jet fuel—has been recovering, the ability to produce it hasn’t. U.S. refining capacity has dropped to roughly 17.9 million barrels a day as of March 2022, from 18.8 mb/d in December 2019, according to the EIA. A lot of that decline can be chalked up to the pandemic shock of 2020, which led some refineries to shut down and others to convert to produce renewable fuel. That, combined with limited refinery capacity elsewhere in the world and a ban on Russian oil and petroleum-product imports, have only made market conditions tighter.”
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