Netback
From Reuters Financial Glossary
Itā??s the maximum price a refiner can pay for a crude oil at its point of loading taking into account his processing equipment and the prevailing freight costs to his refinery. If a refiner was to pay a higher price, heā??d either incur a loss or make no profit at all. The difference between the Netback and the price at which the final processed products are sold is known as refinery margin.
