crack spread

crack spread
A type of commodity-product spread involving the purchase of crude oil futures and the sale of gasoline and heating oil futures. The CENTER ONLINE Futures Glossary
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A hedge used in the energy futures market to offset the risk of buying (or selling) crude oil with an opposite transaction in the refined products that may be derived from it. Exchange Handbook Glossary

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   A calculation showing the theoretical market value of petroleum products that could be obtained from a barrel of crude after the oil is refined or cracked.

Financial and business terms. 2012.

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