CSIMarket


Terms Beginning with C
       
       
 

Crack Spread

Energy Term


Crack spread is a term used in the energy industry to describe the difference or spread between the price of crude oil and the price of refined petroleum products such as gasoline and diesel. It is the difference between the cost of the crude oil that is being used to produce refined petroleum products and the price that the refiner is able to sell those products for.

Crack spreads are an important measure of profitability for refinery operations. A positive crack spread indicates that the refiner is making a profit, while a negative spread indicates that the refiner is operating at a loss. Refiners use crack spreads to determine the most profitable level of production based on output and input prices.

Crack spread is often calculated using futures contracts for crude oil and refined petroleum products, but it can also be calculated based on spot prices or other market indicators. In addition to being used to guide refinery operations, crack spreads are also used by traders and investors to speculate on the pricing dynamics in the energy market.

Overall, crack spread is an important measure of profitability and market conditions in the energy industry and plays a key role in guiding production and investment decisions for refiners and traders alike.


   
     

Crack Spread

Energy Term


Crack spread is a term used in the energy industry to describe the difference or spread between the price of crude oil and the price of refined petroleum products such as gasoline and diesel. It is the difference between the cost of the crude oil that is being used to produce refined petroleum products and the price that the refiner is able to sell those products for.

Crack spreads are an important measure of profitability for refinery operations. A positive crack spread indicates that the refiner is making a profit, while a negative spread indicates that the refiner is operating at a loss. Refiners use crack spreads to determine the most profitable level of production based on output and input prices.

Crack spread is often calculated using futures contracts for crude oil and refined petroleum products, but it can also be calculated based on spot prices or other market indicators. In addition to being used to guide refinery operations, crack spreads are also used by traders and investors to speculate on the pricing dynamics in the energy market.

Overall, crack spread is an important measure of profitability and market conditions in the energy industry and plays a key role in guiding production and investment decisions for refiners and traders alike.


Related Energy Terms
                     
                     
 Ammonia   Bulk Sales   Development well  
 Asphaltene   Capacity Oil and Gas Operations Industry   Dewpoint  
 Barrel   Cfe   Distillates  
 Bbl   Coal   Downstream  
 Bcf   Coke   Dry hole  
 Bcfe   Compliance Coal   Dth  
 Blendstocks   Condensate   Dthe  
 BOE   Crack Spread    Emissions  
 Bpd   Crude Oil Desalting   Equity production  
 Btu   Cubic Foot CF   Ethanol  
               
                  next arrow
 
   


Help

About us

Advertise