Refinery oil a plant usually comprising distillation

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Refinery, Oil a plant, usually comprising distillation units and a variety of additional specialist units, for the manufac- ture of refined products from crude oil. See Refined Products. Regasification Facility a facility that accepts deliveries of LnG and processes it back to gaseous form for injection into the pipeline system. Regulatory Risk the risk associated with the potential for laws related to a given industry, country, or type of security to change and impact relevant investments. also called political risk.
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- 10 - Reverse Tolling Swap Reverse Tolling When a gas pipeline recalls gas used for electric gen- eration and diverts it to end-use markets when gas prices are higher than power prices. Rho the rate of change of the value of an option with respect to the risk-free rate of interest. Roll Over the transfer of a position from one futures period to another involving the purchase (sale) of the nearby month and simultaneous sale (purchase) of a further- forward month. S Settlement Price a price established at the close of a trading day used to calculate the settlement of futures contracts. Short Position When a trader sells a commodity he/she doesn’t own, with a view of buying it cheaper at a later date, he/she is said to be short. Sour/Sweet Crude Definitions which describe the degree of a given crude’s sulfur content. sour crudes are high in sulfur, sweet crudes are low. Sour/Sweet Gas sour gas is natural gas which contains lethal hydrogen sulfide, and must be purified before being injected into a pipeline. sweet gas is gas found in its natural state which does not need to be purified to remove sulfur- bearing compounds. Spark Spread the cost difference of converting natural gas into elec- tricity. Is a measure of potential profit for generating electricity on a particular day. Spot Market a market where the commodity being traded is for immediate delivery. SPR United states strategic Petroleum reserve. Spread the difference between two prices, either across time or between commodities or instruments. Spread-Trading Buying one instrument/commodity and selling an- other, with a view to profiting from the change in the gap between the two markets. Stop-Loss Order Buy or sell orders put in through a broker, which are automatically triggered if the price moves above or below a certain level. Storage, Oil typically onland tankage facilities for short- or long- term storage of crude oil products. Storage, Natural Gas Facilities used to store natural gas which has been transferred from its original location. Usually consists of natural geological reservoirs like depleted oil or gas fields, underground salt domes, aquifers, or in rare cases, abandoned mines. Straddle (long) the simultaneous purchase of a put and a call option with different maturities. this is a bet that volatility will increase; the rise in the value of one option will offset the non-productive premium paid by the other option.
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