A widely accepted grade of crude oil used as a standard in trading. Other grades would be traded at a price differential according to the quality differences. Examples would be WTI, Brent, Dubai and Arab Light.
A market in which prices are declining.
A shipment of one type of product through a pipeline.
Price exposure associated with variation in the relationship between a physical or cash price and the appropriate NYMEX reference. These risks may be associated with location, product specifications, and time variations.
The difference between the price of the actual commodity (e.g. heating oil) and the price of the futures contract. Basis can be calculated by subtracting the futures price from the cash price. For example, if N.Y. Harbor physical heating oil is 60cts/gal and the futures price is 61cts/gal, the basis is 1ct/ gal. Also called basis differential.
Market requirements that remain fairly constant over a period of time that usually are not temperature sensitive.
Gas in a storage reservoir which provides the pressure necessary for designed withdrawals of working gas. Also called cushion gas.
The maximum number of barrels of input that a distillation facility can process within a 24-hour period when running at full capacity under optimal crude and product slate conditions with no allowance for downtime.
The amount of input that a distillation facility can process under usual operating conditions. The amount is expressed in terms of capacity during a 24-hour period and reduces the maximum processing capability of all units at the facility under continuous operation (see barrels per stream day) to account for the following limitations that may delay, interrupt, or slow down production:
- the capability of downstream facilities to absorb the output of crude oil processing facilities of a given refinery. No reduction in barrels per calendar day calculations are made when a planned distribution of intermediate streams through other downstream facilities is part of a refinery’s normal operation;
- the types and grades of inputs to be processed; the types and grades of products expected to be manufactured; the environmental constraints associated with refinery operations; the reduction of capacity for scheduled downtime due to such conditions as routine inspection, maintenance, repairs, and turnaround; and
- the reduction of capacity for unscheduled downtime due to such conditions as mechanical problems, repairs, and slowdowns.
Term used as the standard measurement of volume for crude oil and large quantities of refined products in the petroleum industry. A unit of volume equal to 42 U.S. gallons – often abbreviated as bbl.