Encore Glossary |
Find here terms and their explanations commonly used in Energy Industry, Finance and Trading Boards
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| There are 26 entries in the glossary. |
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| PAD (or PADD) | Petroleum Administration for Defense District. The United States is divided into five distinct marketing regions in which prices might differ due to variations in the supply or demand. |
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| Paper Barrels | A term used to denote trade in non-physical oil (futures, forwards, swaps, etc.) markets which give a buyer or seller the right to a certain quantity and quality of crude oil or refined products at a future date, but not to any specific physical lot. |
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| Par or Basis Grade | The grade or grades specified in a given futures contract for delivery. A contract may permit substitutions for and deviations from the par grade subject to specified premiums or discounts. |
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| Peak Demand | The maximum load during a specified period of time. |
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| Petrochemical | An intermediate chemical derived from petroleum, hydrocarbon liquids, or natural gas, such as ethylene, propylene, benzene, toluene, and xylene. |
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| Petroleum | A generic name for hydrocarbons, including crude oil, natural gas liquids, refined, and product derivatives. |
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| Pin Risk | The risk to a trader who has sold an option that, at expiration, has a strike price identical to, or pinned to, the underlying futures price. In this case, the trader will not know whether he will be required to assume his options obligations. |
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| Pipeline | A pipe through which oil or natural gas is pumped between two points, either offshore or onshore. |
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| Pit or Ring | | The place on the floor of an exchange where a commodity futures or options contract is traded by open outcry. Platinum Group Metals (PGM) Platinum and related metals, including palladium, rhodium, ruthenium, and iridium. |
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| Plant Mothballing | When a plant is not operating because there is no demand for its services the plant is 'mothballed'. |
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| Point or Tick | The smallest monetary unit of change in a futures price or an options premium. |
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| Position | The net total of a trader's open contracts, either long or short, in a particular underlying commodity. |
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| Position Limit | For a single trader or firm, the maximum number of allowable open contracts in the same underlying commodity. |
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| Posted Price | The price some refiners will pay for crude of a certain API gravity from a particular field or area. |
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| Pour Point | A temperature 5 degrees Fahrenheit higher than the temperature at which crude oil or a refined product stops flowing. |
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| Power Factor | A Power Factor is a measure of how effectively electricity is being used on a site. Certain types of equipment cause poor power factors, which reduces the capacity of the network to supply power. Distribution companies will charge customers for this through reactive power charges. |
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| Power Marketer | A wholesale power entity that has registered with the Federal Energy Regulatory Commission to buy and sell wholesale power from and to each other and other public entities at market-derived prices. Power marketing companies include investor-owned, utility-affiliated companies; natural gas marketing companies; financial intermediaries; independent power producers; and entrepreneurs. Typically, power marketers do not own generating facilities. |
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| Premium | 1) The price or cost of an option determined competitively by buyers and sellers in open outcry trading on the exchange trading floor. 2) An upward adjustment in price allowed for delivery of a commodity of higher grade against a futures contract. |
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| Price Discovery | The manner of making prices visible and readily available to the public. |
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| Price Gaps | A chart pattern of the price movement of a commodity when the low price of one bar on a chart is higher than the high of the preceding bar (or inversely, the high is lower than the low of the preceding bar); depicting a price or price range where no trades take place. The price patterns are used by technical analysts to try to recognize changes in a price trend. |
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| Primary Stocks | Stocks of crude oil or refined products held in storage at leases, refineries, natural gas processing plants, pipelines, tankfarms, and bulk terminals that can store at least 50,000 barrels of refined products. |
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| Processing Plant | Plant which separates natural gas into methane and the various other gases (e.g., propane, butane, ethane). |
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| Prompt Barrel | Product which will move or become available within three to four days. |
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| Propane | A natural hydrocarbon occurring in a gaseous state under normal atmospheric pressure and temperature, however, propane is usually liquefied through pressurization for transportation and storage. Propane is primarily used for rural heating and cooking and as a fuel gas in areas not serviced by natural gas mains and as a petrochemical feed stock. |
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| Pump-Over | An intra, or inter-facility transfer. For example, when one pipeline pumps crude oil or refined products from its tanks or mainline into the mainline or storage tank of the receiving pipeline. |
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| Put Option | An option which gives the buyer, or holder, the right, but not the obligation, to sell a futures contract at a specific price within a specific period of time in exchange for a one-time premium payment. It obligates the seller, or writer, of the option to buy the underlying futures contract at the designated price, should an option be exercised at that price. See call option. |
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Glossary V2.0 |
