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      • A crack spread is the overall pricing difference between a barrel of crude oil and the petroleum products refined from it. The price of a barrel of crude oil and the prices of the different products derived from it are not always in sync, leading to the spread in prices.
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  2. Feb 23, 2021 · A crack spread refers to the overall pricing difference between a barrel of crude oil and the petroleum products refined from it. It is an industry-specific type of gross...

  3. en.wikipedia.org › wiki › Crack_spreadCrack spread - Wikipedia

    Crack spread is a term used on the oil industry and futures trading for the differential between the price of crude oil and petroleum products extracted from it. The spread approximates the profit margin that an oil refinery can expect to make by " cracking " the long-chain hydrocarbons of crude oil into useful shorter-chain petroleum products.

  4. The crack spread — the theoretical refining margin — is executed by selling the refined products futures (i.e., gasoline or diesel) and buying crude oil futures, thereby locking in the differential between the refined products and crude oil.

  5. Crack spread refers to the pricing difference between a barrel of crude oil and its byproducts such as gasoline, heating oil, kerosene, and fuel oil. The business of refining crude oil into various components requires careful attention to market prices for the various byproducts.

  6. Mar 15, 2024 · A crack spread measures the pricing difference between a barrel of crude oil and the petroleum products refined from it. This article explains what a crack spread is, how it works, its significance to the oil industry, and how traders and refiners can utilize it for profit or risk mitigation.

  7. Jun 2, 2011 · Crack spreads are differences between wholesale petroleum product prices and crude oil prices. These spreads are often used to estimate refining margins. Crack spreads are a simple measure based on one or two products produced in a refinery (usually gasoline and distillate fuel).

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