Netback purchase

What is Netback purchase?

Netback purchase meaning Refers to a crude oil purchase agreement wherein the price paid for the crude is determined by sales prices of the types of products that are derivable from that crude as well as other considerations (e.g., transportation and processing costs). Typically, the price is calculated based on product prices extant on or near the cargo’s date of importation.

 

reference: Glossary – U.S. Energy Information Administration (EIA)

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