What Is Crack Value?
Here is an essential overview on What Is Crack Value.
Selling the crack spread means you expect that the demand for refined products is weakening or the spread itself is tightening due to changes in oil pricing, so you sell the refined product futures and buy crude futures.
How are crack spreads used in the refining industry?
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).
How is cracking used in the oil industry?
Cracking is a chemical process used in oil refineries. Cracking separates large hydrocarbon molecules in raw crude oil to create byproducts such as heating oil, gasoline, liquefied petroleum gas, diesel fuel, jet fuel and other petroleum distillates.
What are the byproducts of the cracking process?
What is ‘Cracking’. Cracking is a chemical process used in oil refineries. Cracking separates large hydrocarbon molecules in raw crude oil to create byproducts such as heating oil, gasoline, liquefied petroleum gas, diesel fuel, jet fuel and other petroleum distillates.
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