Term of the Day

Caleb Silver, editor of Investopedia, issues a financial “term of the day.” Some are pretty well known, some are boring even, but this one is too good to pass. It sounds so obscene, and maybe to environmentalists it is.

CRACK SPREAD

The definition Caleb offers is:

The 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 processing margin. The “crack” being referred to is an industry term for breaking apart crude oil into the component products, including gases like propane, heating fuel, gasoline, light distillates, like jet fuel, intermediate distillates, like diesel fuel, and heavy distillates, like grease.

Investopedia.com Saturday, 3 April 2021

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