The mod believes you intend to get 100% of your production from cracking the oils.
You should have the cracking under the oil processing, this way it will use the excess output in its calculations instead of the refinery. You then adjust the percentage of the refineries to achieve as little excess as possible and the cracking recipes will also adjust accordingly.
https://puu.sh/HoDsx/e0fd3bf7e8.png
Unless you define an input of your own (That is, something below it), then recipes should draw from the excess output of the production line to prevent too much of a byproduct stockpiling. This is also valuable for cyclical recipes that consume and create the same materials, since you don't need the constant demand when it's already available to use elsewhere in the line.
Hopefully that helps explain the process a little bit.