When the oil markets go into a deadly tailspin as they have right now, sooner or later, everybody in the value chain starts to feel the heat keenly. Only three months into the year, oil and gas companies are trading at roughly half their valuations as the -49.5% YTD return by the Energy Select Sector Fund (XLE) portends, thanks to crude prices tanking to multi-decade lows. It was only a matter of time before the shockwaves hit oil refineries, with the sector now sinking into the red. Gasoline and jet fuel margins have plunged to their lowest levels in more than a decade with the double whammy of weak demand and crude oversupply, making for a perfect cocktail of a highly potent bear market. New York Harbor RBOB Gasoline Front Month Futures Source: Financial Times Crack Spreads Fall Source: CME Gasoline crack spreads were already in freefall for six […]