Crack Spread and its forecasting analysis. An empirical analysis using VAR and ARIMA model.

This thesis strives to describe crack spread which refers to the difference between the price of crude oil and the price of refined products extracted from it. It has a stable price movement throughout the last decade. But last year, there was a huge price hike. This paper showed the relationship between crack spread and WTI crude oil price movement. Also, it analyzed the price forecasting for both cases using two different models, namely ARIMA and VAR