It had to happen -- the poor much-maligned WTI contract, under pressure for weeks, accused of being broken -- snapped back as Valero restarted their McKee refinery. What a shock!!
The May/June spread, which had entered expiration week valued at -$2.70/b, rose as strong as -$1.25/b midday Tuesday. The tighter spreads has had a knock-on effect for the bloated crack spreads -- the May 3-2-1 spread fell from $24.01/b Friday to $19.62/b late Tuesday.
And how about that June WTI/Brent? -$1.35/b, from -$2.30/b Friday. Not unbroken yet, but maybe a little less broken?
More like traders short the May/June WTI, long the May cracks, and short WTI-Brent have headed for the exits after making a lot of money.
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