“The The profitability of companies in the oil refining industry is related to supply and demand of all sources of energy. The price of energy, the earnings of companies in the oil refining industry, and the value of such companies’ securities have recently experienced significant volatility. This may adversely impact companies operating in the oil refining industry,” according to Market Vectors. [A Look at the new Oil Refiners Index]
“Investors interested in this ETF approach need to be monitoring variables such as oil prices, crack spreads, product exports and both domestic and global economic demand forecasts, at minimum. Some suggest that refinery investment exposure belongs to the traders owing to cyclicality, and one can see why this is so,” notes an analysis of CRAK on Seeking Alpha.
CRAK Holdings
Table Courtesy: Market Vectors