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Definition of 'Crack Spread'
The spread created in commodity markets by purchasing oil futures and offsetting the position by selling gasoline and heating oil futures. This investment alignment allows the investor to hedge against risk due to the offsetting nature of the securities.
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Investopedia explains 'Crack Spread'
The name of this strategy is derived from the fact that "cracking" oil produces gasoline and heating oil. Therefore, oil refiners are able to generate residual income by entering into these transactions. During the summer of 2005, the effects of hurricanes in the Southeastern United States created large volatility in the crack spread.
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Search results for 'Crack Spread'
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http://stocks.investopedia.com/stock-analysis/2011/Mideast-Unrest-Squeezes-Refiners-VLO-TSO-SUN-WNR-FTO0302.aspx
... Refiners Crack Under The Spread $100 oil does not bode well for one segment of the
oil patch. Profit margins for refiners depend upon the crack spread. ...
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http://www.investopedia.com/professionals/erp/
... Energy - Total weight - 10%. Terms To Know. Spark Spread; Crack Spread;
Backwardation; Contango; Upstream; Downstream. Hydraulic Fracturing; ...
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http://www.investopedia.com/professionals/erp/default.asp
... Energy - Total weight - 10%. Terms To Know. Spark Spread; Crack Spread;
Backwardation; Contango; Upstream; Downstream. Hydraulic Fracturing; ...
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http://stocks.investopedia.com/stock-analysis/2009/Refiners-Feeling-The-Squeeze-VLO-TSO-SUN-XOM-COP0707.aspx
... That prompted a 12% selloff in gasoline futures, dropping the crack spread - the
differential between crude oil and gasoline prices - to $8.77, the lowest ...
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http://stocks.investopedia.com/stock-analysis/2009/Big-Chill-Wont-Help-Refiners-VLO-SUN-FTO-WNR-TSO1016.aspx
... Measured in terms of the "crack spread," or the premium on heating oil to crude
oil, margins have fallen more than 73% over the past year, the biggest one-year ...
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http://www.investopedia.com/articles/financialcareers/06/findingafirm.asp
... to be more flexible and usually allow for an asset allocation spread across different ...
On the other hand, the big banks often get the first crack at offerings ...
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http://www.investopedia.com/slide-show/risk-tolerance
... Spread Your Risk Around. ... Read More »; 10 Retirement-Wrecking Moves. Don't let these
common mistakes put a crack your nest egg. Read More ». Sponsored Links. ...
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