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Crack Spread & Inflation Risk Simulator

Walter Bloomberg (@DeItaone) Intelligence Dispatch: "CENTRAL BANKS FOCUS ON FUEL PRICES AS INFLATION RISK. Central banks are increasingly watching refining margins, or ‘crack spreads,’ as fuel shortages push gasoline and diesel prices higher. BoE Governor Bailey: refined fuel prices may provide a better early signal."
Research Dated: September 2026

Refinery Market Parameters

Scenarios:
$82.50
$2.75
$3.10
92.4%
15.0%

Central Bank Telemetry & Margins

Monetary Transmission Monitor
3-2-1 Crack Spread
$21.85
Margin per bbl (3 crude → 2 gas + 1 diesel)
2-1-1 Crack Spread
$20.35
Distillate-parity benchmark (2 crude → 1 gas + 1 diesel)
Annualized Fuel CPI Impact
+1.8%
Headline pass-through contribution
Inflation Pressure Index
High
Elevated refining premium > $20/bbl
Central Bank Rate Guidance Posture BoE / Fed / ECB Reaction Model
Hawkish Rate Watch

Elevated crack spreads ($21.85/bbl) combined with fuel shortage bottlenecks (15.0%) signal persistent supply-side cost pressures. Bank of England Governor Andrew Bailey highlights that refined product spreads reveal persistent inflation stickiness beyond raw crude quotes.

Fuel Inflation Risk Gauge 72% Pressure
Component Unit Cost / Yield Barrel Contribution
Input: Crude Cost (3 bbl base) $82.50 / bbl -$247.50
Output: 2 bbl Gasoline (84 gal) $2.75 / gal +$231.00
Output: 1 bbl Diesel (42 gal) $3.10 / gal +$130.20
Gross Revenue per 3 bbl cycle 126 gal combined +$361.20
Operational & Shock Adjustment Util 92.4% | Shock 15.0% $21.85 / bbl
Intelligence Artifacts ✓ Ready for export
// Terminal initialized with locked representative fixture. // Crude: $82.50 | Gas: $2.75 | Diesel: $3.10 | Shock: 15.0% | Util: 92.4% // 3-2-1 Spread: $21.85 | Annualized Fuel CPI Impact: +1.8% | BoE Posture: Hawkish Rate Watch
Source Context & Public Market References:

Reporting baseline grounded in Walter Bloomberg financial wire report (@DeItaone) on central banks monitoring crack spreads: "CENTRAL BANKS FOCUS ON FUEL PRICES AS INFLATION RISK. Central banks are increasingly watching refining margins, or ‘crack spreads,’ as fuel shortages push gasoline and diesel prices higher. Bank of England Governor Andrew Bailey said refined fuel prices may provide a better [indicator of inflation]."

Primary Wire: @DeItaone Wire Status #2097653777125855732 Market Analysis: FXStreet Central Bank Energy Coverage Commodity Standards: EIA 3:2:1 Refining Margin Formulae
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