Term applied to the differential between what a typical refined products mix would yield, and the value of crude. The common crack spread features a per bbl reference derived of 66.6% unleaded gasolin [..]

The crack spread is the spread or differential between the price of crude oil and the price of the oil products refined from it. The word crack is a reference to a method of refining crude into oil products. Complex hydrocarbon molecules are cracked or broken down into simpler, higher value hydrocarbons. The crack spread is traded on futures market [..]

Definition A commodity-product spread involving the purchase of crude oil futures and the sale of gasoline and heating oil futures.

A specific spread trade involving simultaneously buying and selling contracts in crude oil and one or more derivative products, typically gasoline and heating oil. Oil refineries may trade a crack spread to hedge the price risk of their operations, while speculators attempt to profit from a change in the oil/gasoline price differential.

A type of commodity-product spread involving the purchase of crude oil futures and the sale of gasoline and heating oil futures.

Difference between the price of crude oil and the price of products made from it

The difference between crude oil and refined petroleum product prices, when expressed in similar units, is known as the crack spread. For example, if crude oil costs $60 per barrel and jet fuel costs $75 per barrel, the jet fuel crack spread is $15 per barrel.