The Basics: What Is a Crack Spread?
A crack spread is the difference between the price of crude oil and the price of refined petroleum products like gasoline, diesel, or jet fuel. The term "crack" refers to the refining process of "cracking" crude oil molecules into lighter products.
In its simplest form:
Since gasoline and heating oil are priced per gallon but crude oil is priced per barrel (42 gallons), you must convert: Product Price ($/gal) x 42 = Product Price ($/bbl).
The 3-2-1 Crack Spread
The most widely used composite crack spread is the 3-2-1, which models a typical refinery yield: 3 barrels of crude producing 2 barrels of gasoline and 1 barrel of diesel/heating oil.
Types of Crack Spreads
| Type | Formula | Who Uses It |
|---|---|---|
| 3-2-1 | (2 x gasoline + 1 x diesel - 3 x crude) / 3 | General refinery P&L benchmark |
| Jet Fuel Crack | Jet fuel ($/bbl) - Crude ($/bbl) | Airlines, aviation fuel buyers |
| Diesel Crack | Heating oil ($/bbl) - Crude ($/bbl) | Trucking, shipping, industrial |
| Gasoline Crack | RBOB gasoline ($/bbl) - Crude ($/bbl) | Retail fuel markets |
Why Do Crack Spreads Matter?
For refiners: The crack spread IS the P&L. When the 3-2-1 crack spread is high, refineries are profitable. When it compresses, margins shrink and refineries may cut throughput.
For traders: Crack spreads signal product scarcity. In 2026, the jet fuel crack hit $100/bbl — indicating severe refined product shortages even as crude was available.
For corporate energy buyers: Widening crack spreads mean your fuel costs are rising faster than crude. Airlines hedge the jet fuel crack, not just crude.
Get Crack Spread Data via API
# Get the 3-2-1 crack spread
curl -H "Authorization: Token YOUR_KEY" \ "https://api.oilpriceapi.com/v1/spreads/crack?type=3-2-1"
# Get jet fuel crack spread
curl -H "Authorization: Token YOUR_KEY" \ "https://api.oilpriceapi.com/v1/spreads/crack?type=jet"
The API returns the spread value, component prices (crude, gasoline, diesel), and historical change metrics. See the full API documentation.