NEW YORK ( TheStreet) -- Jim Cramer wanted me to take a victory lap on refinery stocks, which I mentioned were ready for a selloff two weeks ago and which have dropped almost 10% of their value in the last three days of trading.
To be fair, I wasn't particularly bullish on refiners during their big run over the last year, but the moment to take profits wasn't too hard for me to see.
That's because margins for the refiners, particularly for those in the mid-continent like HollyFrontier (HFC - Get Report), CVR Energy (CVI - Get Report) and Western Refining (WNR - Get Report), were being stoked by a very wide West Texas Intermediate/Brent crude differential -- the WTI component representing what these refiners pay for crude and the Brent price representing what they were receiving for their finished gasoline product.
So, as the "spread" between the two began to moderate a few weeks ago, from near $20 to under $15, I wasn't shy about suggesting that maybe the run in the refiners would be nearing an end. That prediction has played itself out in the past three days.I talk more about the refiners with Jim in the video above. At the time of publication the author had no position in stocks mentioned. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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