One Guy's Viewpoint

A New Index. But When?

I've noticed that the sources showing the price of a barrel of crude oil these days quote the value for "sweet, light" crude. In earlier days the index crude was "West Texas Intermediate." I have no idea when the change was made. I do know, though, that sweet, light is always more expensive. Maybe not a lot more expensive, but more expensive, none the less.

Light crude is defined by the American Petroleum Institute as having a specific gravity greater than 40. Sweet, according to the API, has a sulphur content of about two percent or below. I don't recall the breakpoint between Intermediate and Sour.

Does it matter? Not to me. Anyway, likely most of the imported oil we refine is sweet and light.

posted by Burt @ 5:37 PM