A netback value expresses the worth of a crude in terms of the value of products available from it. Each crude has a particular yield of products with a gross product worth which depends on product prices and the refining process. The refinery gate value of a crude is calculated by subtracting variable refining costs such as fuel costs from the gross product worth. Subtracting freight costs from the refinery gate value gives the netback value or the worth of the products “netted back” to the crude loading terminal. Subtracting the crude price from the netback value gives the netback margin.
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