Curve structure
Contango — forward prices above prompt prices, which can make storing physical barrels economic.
Backwardation — prompt prices above forward prices, typically signalling tight prompt availability.
Time spread — the price difference between two delivery months, and the cleanest expression of a storage or scarcity view.
Refining and product economics
Crack spread — the margin between crude and the products refined from it, and the core indicator of refinery profitability.
Yield — the proportion of each product a refinery produces from a given crude slate.
Run rate — the utilisation level at which a refinery is operating, a direct input into product supply forecasts.
Physical execution
Laycan — the window within which a vessel must present for loading.
Demurrage — compensation payable when loading or discharge exceeds agreed laytime.
Lightering — transferring cargo to a smaller vessel to meet draft restrictions at the receiving port.
Trading concepts
Arbitrage — buying in one market and selling in another to capture a differential net of freight and financing.
Basis — the difference between a physical price and the futures contract used to hedge it.
Benchmark — a published reference price such as a dated assessment against which physical business is quoted.