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Re: Oil and oil stocks MasterPlan  07-04-2008, 6:55 PM | Post #2535618
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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! 

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