Financial Analysis Question
Why has Frontier Oil Corp. (FTO) declined so much during the past 12 months?
Why has Frontier Oil Corp. (FTO) declined so much during the past 12 months, while the price of gasoline has gone up hugely and the oil sector as a whole has done very well? FTO seem to have good business fundamentals. What an I missing?
Asked by AF in
Financial Analysis
one year ago
Stocks referenced: FTO
Answers
105 points
fwkeith answered one year ago …
FTO is a refiner.....the crack spread (margin between price of oil and price of gasoline) for refiners has been squeezed as oil prices have skyrocketed....much like the net interest spread of a bank gets squeezed in a rising rate environment). You'll notice today since the price of crude is down, due partially to surprise increase in inventories, the stock price of the refiners is up.
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