The crack spread is probably the most important financial strategy within the energy industry. The price of the crack spread is so crucial that it is closely monitored by commercials, hedge funds, banks, energy companies and governments. The value of the crack spread summarizes and combines, in 1 strategy, the price of crude oil and its two most important derivatives: diesel and gasoline. The entire oil industry, which still plays a very significant role as far as energy production is concerned, is strongly and inevitably linked to the performance of the crack spread. The present research investigates the structure of the aforementioned strategy and the quantitative relationships of and among its components.
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http://www.insidefutures.com/article/1267689/The%20Crack%20Spread.html
