Opinion on  United States Gasoline Fund LP (UGA)
Gasoline is undervalued vis a vis crude oil-crack spread at record lows

What is crack spread?

Refineries turn crude oil into products like gasoline, low-sulfur diesel, and heating oil by "cracking" large chains of hydrocarbons into smaller ones. They make money by selling these products for more than what they pay for the crude. That price differential is the spread.

3-2-1 crack is an approximation of the profit margin that a refiner earns by turning crude oil into end-use products. Take the price of two barrels of gasoline and one barrel of heating oil, divide by three, subtract this average from the price of a barrel of crude, and there's your crack spread.

(from http://www.fool.com/investing/value/2007/04/30/valero-hooked-...

The crack spread is falling right now squeezing refining margins and reducing gasoline production when America is going into summer driving season.This current situation where the raw product is more valuable than the refined product is unsustainable and will reverse.

http://www.bloomberg.com/apps/quote?ticker=CRK321M1%3AIND

Meanwhile gasoline futures are rising.

http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-...

http://biz.yahoo.com/ap/080428/oil_prices.html

Reason for posting-this gem in the article

Gas prices are rising in part because refiners are making the seasonal switch-over from making winter-grade gasoline to the more expensive, but less polluting, fuel they must sell during the summer. Supplies tend to fall while refiners are doing this as they try to sell off all of their winter gasoline.

But short supplies of a key ingredient used in the manufacture of summer grade gas have contributed to the increases, as has an intentional slowing of gasoline production by many refiners due to low profit margins on the fuel. Refiners have to buy the crude they turn into gasoline and other fuels, and crude prices have risen much faster over the past year than gas prices.