Crack
Contents
Deciphering Cracks in Energy Markets: Understanding the Dynamics
Unlock the intricacies of cracks in the energy markets and their significance in refining margins. Explore the factors that affect crack spreads, examples of crack trading strategies, and the impact of petroleum product proportions on refining operations.
Understanding Cracks in Energy Markets
Delve into the concept of cracks, derived from the fluid catalytic cracking of crude oil, and their role in estimating refining margins. Learn how cracks are used to hedge price risks and assess market supply conditions.
Factors Influencing Crack Spreads
Explore the factors that influence crack spreads, including the mix of petroleum products produced by refineries and the type of crude oil processed. Understand how demand variations and refining processes affect crack calculations.
Exploring Examples of Crack Trading Strategies
Discover examples of crack trading strategies, including single product cracks and multiple product cracks. Learn how refiners and investors utilize crack spreads to hedge against price fluctuations in crude oil and petroleum products.