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Octane
Octane is a measure of a fuel’s resistance to engine knocking during combustion. Higher octane fuels burn more efficiently under compression.
In oil trading, octane levels affect gasoline pricing, blending strategies, and refinery output decisions. Premium fuels often command higher market prices.
Traders monitor octane specifications when assessing refinery margins and product demand, as consumer and industrial requirements influence pricing.
Understanding octane is critical for optimizing production, hedging gasoline contracts, and ensuring compliance with quality standards.