What is a crack spread?
A crack spread compares refined-product value with crude-oil cost. It is a market proxy for a refining relationship, not a refinery’s audited net profit. Operating expenses, yields and location differences are outside a simple futures-price calculation.
CME Group’s crack spread guide explains the need to align units: WTI futures are quoted in dollars per barrel, while RBOB and ULSD futures use dollars per gallon. The product quote is multiplied by 42 to express it per barrel.
Choose the relationship before the chart
| Relationship | Research focus |
|---|---|
| 1:1 product crack | One refined product relative to crude oil. |
| 3:2:1 crack | A basket of two gasoline units and one distillate unit against three crude units. |
| Calendar spread | Two delivery months of one instrument, rather than a refining basket. |
The labels are not interchangeable. A widening product crack can occur while the crude calendar curve moves in a different direction.
A research sequence
Specify the crude benchmark, product contracts, expiry convention and unit conversion. Next, decide whether you are studying a current price relationship, changes in that relationship, or a seasonal pattern across several years. Each requires a different interpretation.
For historical comparisons, retain the same basket and month-selection rule. Switching from a same-month basket to a staggered basket changes the exposure and can make two charts disagree without either calculation being arithmetically wrong.
Use the result with context
A wider spread can reflect product strength, crude weakness or both. Inspect the legs separately before assigning a cause. Inventory reports, refinery operations and demand conditions can help frame a hypothesis, but a crack chart alone cannot prove it.
This is an educational cluster. Its presence does not imply live energy-market coverage in FuturesSpread. Use the market coverage page to check available product tools.
Continue your research
Inspect the evidence behind a spread idea
Explore the available markets, compare seasonal windows and review historical outcomes.
Open FuturesSpreadFutures trading involves substantial risk. Educational examples are hypothetical. Historical patterns and backtests do not guarantee future results. Check current market coverage and access terms in the product.
Research content version 2026.09.28.1