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Tristan Thompson

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@TThompson

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Joined August 2009
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Tristan Thompson Verified account @TThompson
Another all time high

My thought on $MPC

Marathon buys crude oil, then turns it into gasoline & diesel, then profits from the difference between what it pays for oil and what it sells those fuels for (crack spread)

With the Strait of Hormuz closed, fuel supplies are limited so margins go up

—> Every $1 increase in margins
means ~$1.1B in annual earnings
—> That spread has widened by $19

So when $MPC climbs when crude oil barely moves, you know why

Since original portfolio post crude oil is up 2% and $MPC: +20%
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