September 24th, 2001, 12:02 pm
Products aren't my specialty, but jet fuel is a not insignificant proportion of refined crude, about 8% in the US, for example. You are correct about repositioning the refineries, but to date I understood that in the US, for example, refiners were making more heating oil (pushing down heating oil prices), yet still taking less crude (pushing down crude prices - what a drop today!). This is a good example of why any processing facilities are more or less complicated spread options, and hence part of the reason for the intense interest in spread options in the energy markets