Energy Industry Glossary

A forward curve structure where futures prices are lower than the current spot price. Often signals tight near-term supply or strong prompt demand — the market is paying a premium for immediate delivery.

Related: Contango, Forward Curve

North Sea light sweet crude oil benchmark used to price roughly two-thirds of the world's traded crude oil. Delivered FOB Sullom Voe; ICE Brent futures are the global benchmark contract.

Also known as: Brent Crude

Related: WTI, Dated Brent

A forward curve structure where futures prices are higher than the current spot price. Indicates the market is willing to pay a premium for delivery in the future, often associated with ample near-term supply or expectations of rising prices.

Related: Backwardation, Forward Curve

A measure of refinery margin computed as the difference between the value of refined products (gasoline, diesel) and the cost of crude oil input. Common formulations include the 3-2-1 (three barrels of crude making two of gasoline and one of distillate) and 2-1-1.

Also known as: Refining Margin

Related: 3-2-1, WTI

Unrefined petroleum extracted from the ground, varying by API gravity (light vs heavy) and sulfur content (sweet vs sour). Refineries process crude into finished products like gasoline, diesel, jet fuel, and asphalt.

Related: WTI, Brent, Refinery

The crude oil pricing and storage hub at Cushing, Oklahoma — the physical delivery point for the NYMEX WTI futures contract. Cushing inventory levels are a closely-watched indicator of U.S. crude balance.

Related: WTI, Storage

Inventory expressed in days of consumption — current stock divided by recent average daily demand. Used to assess whether supply is tight, normal, or oversupplied relative to historical norms.

Related: WPSR

Petroleum Administration for Defense District — a five-region geographic grouping used by the EIA to report U.S. petroleum supply, demand, and inventory data. PADD 1 (East Coast), PADD 2 (Midwest), PADD 3 (Gulf Coast), PADD 4 (Rocky Mountain), PADD 5 (West Coast).

Also known as: Petroleum Administration for Defense District

Related: EIA

The wholesale price of refined product loaded into trucks at a terminal rack. Posted by terminal-supplier-product (TSP) combination; the price a fuel buyer pays before transport, taxes, and margin. OPIS and DTN are the dominant rack price reporters.

Also known as: Rack Price, Terminal Rack

Related: TCN, OPIS

Reformulated Blendstock for Oxygenate Blending — the gasoline base stock traded on NYMEX before ethanol is added at the rack. The RBOB futures contract is the U.S. benchmark for wholesale gasoline pricing.

Also known as: Reformulated Blendstock for Oxygenate Blending

Related: Gasoline, Rack Pricing

Terminal Control Number — the IRS-issued identifier (e.g. 'TX489') for a registered fuel terminal subject to federal excise tax reporting. Approximately 1,200 TCN terminals operate across the U.S.

Also known as: Terminal Control Number

Related: Rack Pricing, Terminal

Ultra-Low Sulfur Diesel — diesel fuel with a maximum sulfur content of 15 parts per million, mandated by the EPA for on-highway use since 2006. The NYMEX heating oil contract has tracked ULSD specifications since 2013.

Also known as: Ultra-Low Sulfur Diesel

Related: Heating Oil, Diesel

Weekly Petroleum Status Report — an EIA publication released every Wednesday showing U.S. crude and product inventories, refinery utilization, imports, exports, and implied demand for the prior week. One of the most-watched data releases in oil markets.

Also known as: Weekly Petroleum Status Report

Related: EIA, Days of Supply

West Texas Intermediate — the U.S. benchmark light sweet crude oil grade, delivered at Cushing, Oklahoma. The NYMEX WTI futures contract is the primary North American oil price reference.

Also known as: West Texas Intermediate

Related: Brent, Cushing, Crack Spread