# Crack Spread Analysis AI Agent Connect

> Crack Spread Analysis MCP gives your AI client the math needed for refinery economics. It handles everything from calculating immediate profitability via get_current_spread to determining risk mitigation through calculate_hedge_ratio. You can also track market cycles with get_historical_trend and adjust for crude characteristics using get_quality_impact_adjustment.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_UkLVgdM4fGerspfgfzfws2iAgNVFYTHUfBQ82F9j/ai-agent-connect
- **Tags:** refinery, crude-oil, crack-spread, hedging, oil-market

## Description

You can now bring refinery economics directly into your AI workflow. Instead of manually calculating margins or checking historical spreads, you let your AI agent handle the heavy lifting. This MCP provides the specific mathematical tools required to evaluate how crude oil prices and product yields impact your bottom line. 

You can use it to check real-time profitability for specific refinery configurations or look back at historical trends to spot market cycles. If you need to manage volatility, the MCP calculates the necessary hedge ratios to protect your margins. It even accounts for the physical reality of refining by adjusting for crude oil quality. It turns your AI client into a specialized analyst that understands the relationship between crude feedstock, product yields, and market spreads.

## Tools

### calculate_hedge_ratio
This tool determines the specific ratio of financial hedging you need to offset price risk.

### get_current_spread
Use this to find the immediate profitability of a refinery setup based on current market prices.

### get_historical_trend
This tool analyzes how a specific crack spread configuration has moved over a chosen timeframe.

### get_quality_impact_adjustment
This provides the adjustment factor needed to account for specific crude oil characteristics.

## Prompt Examples

**Prompt:** 
```
What is the current 3-2-1 crack spread if crude is $80 and gasoline/diesel are $110 and $95?
```

**Response:** 
```
The current 3-2-1 crack spread value is $55.00 per barrel.
```

**Prompt:** 
```
Show me the historical trend for the 5-3-2 spread in the US Gulf Coast from 2023-01-01 to 2023-12-31.
```

**Response:** 
```
The average spread for the period was $42.50 with a volatility of 5.2 and an upward trend direction.
```

**Prompt:** 
```
Calculate a hedge ratio for a spread of $50 with a volatility of 4 and risk tolerance of 0.5.
```

**Response:** 
```
The recommended hedge ratio is 0.65, with an estimated hedge cost of $12.50.
```

## Capabilities

### Margin Calculation
Your agent calculates real-time profitability for specific refinery configurations.

### Risk Management
The AI determines optimal hedge ratios to mitigate price volatility.

### Trend Analysis
Your agent reviews historical spread movements to identify market cycles.

### Crude Quality Adjustment
The AI adjusts yield expectations based on the specific characteristics of a crude oil.

## Use Cases

### Real-time Margin Monitoring
Check how a change in crude or product prices affects your current refinery profitability.

### Hedging Strategy Planning
Calculate the right amount of financial hedging needed to protect against market swings.

### Market Cycle Research
Analyze how specific spreads have behaved over months or years to inform future strategy.

### Feedstock Evaluation
Adjust expected yields based on the specific quality of a new crude oil source.

## Benefits

- Automates the math for complex crack spread configurations.
- Provides data-driven hedge ratios to manage price exposure.
- Connects crude oil quality directly to profitability adjustments.
- Reduces manual data entry by feeding market prices into your AI client.

## How It Works

Connect the MCP to your AI client and start running calculations immediately.

1. Connect your AI client to Vinkius.
2. Select the Crack Spread Analysis MCP from the catalog.
3. Ask your AI agent to perform a specific calculation or trend analysis.
4. The agent uses the MCP tools to pull data and run the math.
5. Receive the calculated results directly in your chat interface.

## Frequently Asked Questions

**What is a crack spread?**
A crack spread is the difference between the price of crude oil and the petroleum products refined from it. This MCP helps you calculate that difference to determine refinery margins.

**Which AI clients can use this MCP?**
You can use this MCP with any compatible client, including Claude, Cursor, Windsurf, and VS Code.

**How does the hedge ratio calculation work?**
The tool calculates the optimal ratio of financial hedging required to mitigate your specific price risk based on volatility and spread values.

**Can I analyze historical data?**
Yes, the get_historical_trend tool allows your agent to analyze how specific spreads have moved over any given period.

**Do I need to host the MCP myself?**
No, Vinkius hosts and manages the MCP for you. You just connect your client and start using the tools.