Oil prices have gone through a significant correction over the past few weeks, with WTI crude dropping from a six-month high of $66.30/barrel on April 23 to $61.04/barrel on May 13. While prices have rebounded to $63.31 on May 17, the precipitous drop has awakened fears that mounting macro challenges including escalating trade tensions between the U.S. and China (leads to risk aversion and weaker demand) as well as a buildup in crude inventory as per the latest EIA data could trigger another down leg to the March 8 low of $55.31, which also happens to be the first technical support for oil. Luckily for oil bulls, one major metric still seems to support the bullish thesis: crack spreads. WTI (NYMEX) Price Source: Nasdaq Crack spreads bring good tidings Crack or processing spreads refer to the pricing difference between a barrel of crude oil and the ensuing petroleum products […]