The amount by which an options contract is in the money. A 60cts/gal call option would have 2cts/gal of intrinsic value if the underlying futures price were 62cts/gal.
Refers to an option where the futures price has exceeded the strike price on which it is based. An option to buy December heating oil at 60cts/gal is “in the money” when December heating oil futures move above 60cts/gal. A put option for 60cts/gal would be “in the money” if the futures price is under the 60cts/gal strike price.
An agency in Paris, France, which tracks energy statistics and information on an international level.
Transportation movement involving more than one mode (e.g. rail/motor, motor/air, or rail/water).
A mixture of petroleum products occurring when batches of different products are shipped consecutively through a pipeline. Interface oil is re-refined into gasoline and diesel.
A company involved in all aspects of the petroleum business from wellhead crude production to retail sales of refined petroleum products.
Funds required to establish a new position. Exchanges set minimums depending on volatility, market conditions, etc. and the brokerage firm may set margins above these exchange minimums. Margins for a would-be speculator are much higher than for a bona fide hedger.
Receipts of crude oil and petroleum products into the 50 States and the District of Columbia from foreign countries, Puerto Rico, the Virgin Islands, and other U.S. possessions and territories.
The amount of foreign crude oil burned as a fuel oil, usually as residual fuel oil, without being processed as such. Imported crude oil burned as fuel includes lease condensate and liquid hydrocarbons produced from tar sands, gilsonite, and oil shale.
A measurement of the market’s expected price range and variation for the underlying commodity futures based on market traded options premiums. Differs from historical volatility that lists annualized standard deviation of percent changes in futures prices over a specific period.