Good stuff, Anil. Thanks.
AKHalea: The
3/2/1 spread can be easily tracked by taking the price spreads of NYMEX
futures contracts for front month (currently traded front month).
The spread is obtained by the following formula: 66.7% NYMEX RB
contract (gasoline) + 33.3% of NYMEX HO (Heating Oil) contract and
subtracting price of NYMEX light sweet crude (CL). However, RB & HO
are in cent/gallon, so you need to multiply them by 0.42 to convert to
$/barrel, the units for CL quotes.
Didn't I see a crack
spread chart somewhere? I think I did. But I don't know
where I saw it or what went into it. If it uses your 3/2/1
formula, that would be a lot easier than all that math!