One week ago, we looked at an epic build up of gasoline inventories on the East Coast, also known as PADD1, which had slammed the crack spread to record lows for this time of the year, and asked if “ This What Finally Drags Crude Oil Lower .” We were referring to the collapsing Crack Spreads, which show that something disturbing is taking place for US refingers who are no longer able to “internalize” the massive crude glut. U.S. gasoline crack spread a proxy for refiner margins, has dropped 34 percent in two weeks. On Wednesday, it hit a five-year low for this time of year below $13 a barrel. That is less than half the crack spread of $28 a barrel at this time last year. As of today, the WTI crack spread was $13.1, largely unchanged from a week ago. We then quoted Andrew Lebow, senior partner […]