Crack Spread
The price gap between crude oil and the fuels refined from it, a rough measure of refinery profit margins.
In plain English
The price gap between crude oil and the fuels refined from it, a rough measure of refinery profit margins.
Refiners 'crack' crude oil into gasoline, diesel and other products. The crack spread is the difference between what they pay for crude and what they get for those products.
Traders can trade it directly with futures. A wide crack spread usually means strong fuel demand or tight refining capacity.
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