Derivatives

12 Months Ended

Dec. 31, 2019

Summary of Derivative Instruments [Abstract]

Derivatives

For further information regarding the fair value measurement of derivative instruments, including any effect of master netting agreements or collateral, see Note 17. See Note 2 for a discussion of the types of derivatives we use and the reasons for them. We do not designate any of our commodity derivative instruments as hedges for accounting purposes.

The following table presents the fair value of derivative instruments as of December 31, 2019 and 2018 and the line items in the balance sheets in which the fair values are reflected. The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under the terms of our master netting arrangements including cash collateral on deposit with, or received from, brokers. We offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. As a result, the asset and liability amounts below will not agree with the amounts presented in our consolidated balance sheets.

(In millions)	December 31, 2019
Balance Sheet Location	Asset		Liability
Commodity derivatives
Other current assets	$	63	$	106
Other current liabilities(a)	—		5
Deferred credits and other liabilities(a)	—		55

(In millions)	December 31, 2018
Balance Sheet Location	Asset		Liability
Commodity derivatives
Other current assets	$	400	$	283
Other current liabilities(a)	1		16
Deferred credits and other liabilities(a)	—		54

^(a)   Includes embedded derivatives.

The table below summarizes open commodity derivative contracts for crude oil, refined products and blending products as of December 31, 2019. 

	Percentage of contracts that expire next quarter	Position
(Units in thousands of barrels)		Long	Short
Exchange-traded(a)
Crude oil	85.7%	26,287	27,237
Refined products	94.7%	15,298	12,519
Blending products	99.5%	1,976	3,770

^(a)  Included in exchange-traded are spread contracts in thousands of barrels: Crude oil - 5,130 long and 330 short; Refined products - 950 long and 450 short

The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income:

(In millions)	Gain (Loss)
Income Statement Location	2019			2018			2017
Sales and other operating revenues	$	(19	)	$	13		$	5
Cost of revenues	(77		)	(59		)	(26		)
Total	$	(96	)	$	(46	)	$	(21	)