Gasoline Crack Spread Surpasses Pre-Ukraine Invasion Levels

The gasoline crack spread is approaching levels seen after Russia invaded Ukraine in 2022. Despite this, refineries are operating near full capacity, while war, damaged infrastructure, and disrupted shipping have created a shortage of finished fuel.

Crude oil prices seem disconnected from the fuels consumers actually use, such as gasoline, diesel, and jet fuel. This is evident from refiners being paid nearly $60 a barrel to turn crude into gasoline.

The world's energy market appears to be driven by manipulation of headline oil prices, rather than genuine supply and demand factors.