Petroleum Economics

The term used for the price margin that reflects a difference between refined products and crude?

Crack spread

What term describes a project's minimum acceptable rate of return?

Hurdle rate

What market structure describes prices declining over future months?

Backwardation

What type of hedge protects producers from falling oil prices?

Put option

The term for an accounting measure that captures value lost due to asset write‑downs

Impairment

The term for financial tools that lower an investor’s exposure to swings in commodity prices?

Hedging

What market structure describes higher prices in later delivery months?

Contango