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Energy Market Glossary

Searchable definitions for commonly used oil, refining, logistics, and market terms.

API gravity

A density scale commonly used to compare crude oils.

Backwardation

A market structure where near-term prices are above later-dated prices.

Barrel

A standard oil-market volume equal to 42 U.S. gallons.

Benchmark

A reference crude or price used to compare other grades and transactions.

Brent

A widely followed benchmark associated with North Sea crude streams.

Contango

A market structure where later-dated prices are above near-term prices.

Crack spread

A simplified measure comparing crude input cost with refined-product values.

Distillation

A refining process that separates components by boiling range.

Downstream

Refining, distribution, and marketing activities.

Feedstock

A material used as an input to an industrial process.

Inventory

Oil or products stored for operational, commercial, or strategic use.

Lifting cost

The operating cost of producing oil from an existing project.

Midstream

Transportation, storage, and related infrastructure.

OPEC

An intergovernmental organization of oil-exporting countries.

Refinery run

The volume of crude processed by refineries over a period.

Spare capacity

Production capacity that can be brought online within a defined timeframe.

Strategic reserve

Government-controlled petroleum stocks for supply emergencies.

Upstream

Exploration and production activities.

WTI

A widely followed U.S. crude oil benchmark.

Yield

The share of different products produced from a refinery input.

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