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Crack Spread

Trading Term
  1. In energy futures, this is the simultaneous purchase of crude oil futures and the sale of petroleum product futures to establish a refining margin.
  2. 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. This does not necessarily represent the refining margin because a barrel of crude yields varying amounts of petroleum products.

See also

  • Gross Processing Margin

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