Our primary market risk is commodity price risk. We are exposed to market risks related to the volatility in crude oil and refined products, as well as volatility in the price of natural gas used in our refining operations. We periodically enter into derivative contracts in the form of commodity price swaps, forward purchase and sales and futures contracts to mitigate price exposure with respect to our inventory positions, natural gas purchases, sales prices of refined products and crude oil costs.

We are exposed to market risk related to the volatility in foreign currency exchange rates. We periodically enter into derivative contracts in the form of foreign exchange forward contracts to mitigate the exposure associated with fluctuations on intercompany notes with our foreign subsidiaries that are not denominated in the U.S. dollar.

We had swap contracts serving as cash flow hedges against price risk on forecasted purchases of natural gas that matured as of December 31, 2021. We also periodically have forward sales contracts that lock in the prices of future sales of crude oil and refined product. These contracts have been designated as accounting hedges and are measured at fair value with offsetting adjustments (gains/losses) recorded directly to other comprehensive income (loss). These fair value adjustments are later reclassified to earnings as the hedging instruments mature.

The following table presents the pre-tax effect on other comprehensive income (loss) (“OCI”) and earnings due to fair value adjustments and maturities of hedging instruments under hedge accounting:


	Net Unrealized Gain (Loss) Recognized in OCI				Gain (Loss) Reclassified into Earnings
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,				Income Statement Location	Three Months Ended September 30,
	2022		2021			2022		2021
	(In thousands)
Commodity contracts	$	—	$	960	Sales and other revenues	$	—	$	(468)

					Operating expenses	—		520
Total	$	—	$	960		$	—	$	52



Derivatives Designated as Cash Flow Hedging Instruments	Nine Months Ended September 30,				Income Statement Location	Nine Months Ended September 30,
	2022		2021			2022		2021
	(In thousands)
Commodity contracts	$	326	$	1,742	Sales and other revenues	$	(5,288)	$	(19,239)

					Operating expenses	—		467
Total	$	326	$	1,742		$	(5,288)	$	(18,772)

We have commodity contracts including NYMEX futures contracts to lock in prices on forecasted purchases and sales of inventory and forward purchase and sell contracts that serve as economic hedges (derivatives used for risk management, but not designated as accounting hedges). We also have forward currency contracts to fix the rate of foreign currency. In addition, our catalyst financing arrangements discussed in Note 10 could require repayment under certain conditions based on the future pricing of platinum, which is an embedded derivative. These contracts are measured at fair value with offsetting adjustments (gains/losses) recorded directly to earnings.


	Gain (Loss) Recognized in Earnings
Derivatives Not Designated as Hedging Instruments	Income Statement Location	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
		(In thousands)
Commodity contracts	Cost of products sold	$	27,042	$	(7,035)	$	(10,364)	$	(19,114)
	Interest expense	1,479		4,411		4,060		11,917
Foreign currency contracts	Gain (loss) on foreign currency transactions	28,922		9,678		35,452		(3,151)
	Total	$	57,443	$	7,054	$	29,148	$	(10,348)


		Notional Contract Volumes by Year of Maturity
	Total Outstanding Notional	2022	2023	Unit of Measure






Derivatives Not Designated as Hedging Instruments
NYMEX futures (WTI) - short	1,915,000	1,915,000	—	Barrels


Forward gasoline and diesel contracts - long	50,000	50,000	—	Barrels



Foreign currency forward contracts	441,917,757	113,398,694	328,519,063	U.S. dollar
Forward commodity contracts (platinum)	38,723	3,800	34,923	Troy ounces

The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.


	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet		Net Liabilities Recognized in Balance Sheet
			(In thousands)
September 30, 2022





Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts	$	9,082	$	—	$	9,082	$	—	$	—	$	—

Commodity forward contracts	190		—		190		90		—		90
Foreign currency forward contracts	33,454		—		33,454		—		—		—
	$	42,726	$	—	$	42,726	$	90	$	—	$	90

Total net balance					$	42,726					$	90

Balance sheet classification:	Prepayment and other				$	42,726	Accrued liabilities				$	90