Overview of Light Crude Oil

Introduction

Light crude oil is fluid petroleum which is low in density. It is known to stream liberally when it is on normal temperature. It is very low in viscosity as well as its specific gravity. But the API gravity of the light classification of crude oil is high. This is as result of the existence of a high dimension of light carbon and hydrogen divisions. Most of the light crude oil, irrespective of their origin, is usually low in wax.

These advantages of light crude oil make it to get a bigger price more than the heavy crude oil while it is being traded. Most importantly, the reason for the high price of light crude oil than other classifications like heavy is because it generates larger amount of diesel fuel and gasoline when refined into useable goods at an oil refinery industrial plant.

Specs of Light Crude Oil

A broad diversity of benchmark petroleum all over the world is taken as light crude oil. One of the outstanding types in North America region is the west texas intermediate. It is known to hold an API gravity of 39.6 degrees. It is the way its cited at the time the prices of oil are being quoted. The usually cited bench market oil which is gotten from the Europe is the Brent crude.

The API of the brent crude oil is 38.06 degrees. The difference between the west texas intermediate in terms of API gravity is 1.03 degrees. This makes west texas intermediate better than the brent crude. The third most preferred benchmark is Dubai crude. It has an API gravity of 31 degrees. It is regarded to the Mideast touchstones, but it is not the case if it is refined in United States of America.

The biggest oil field which has oil producing wells located in Saudi Arabia manufactures light crude which varies from 33 degrees of API to 40 degrees of API. That is a difference of 7 degrees of API gravity. The name of this oil field is referred to as Ghawar.

In Africa, there are also countries that produce light crude oil. One of the notable countries in Africa that produces light crude oil is known as Nigeria. The grade that is widely abundant and largely produced is bonny light crude oil. It can be shortened as BLCO.

Historic Price of light crude oil

The price of light crude oil fluctuates. The gulf war fought in the Middle East was one of the incidents that caused the price of the light crude oil to skyrocket to a higher amount. Disasters like the hurricane Katrina also caused the light crude oil to increase. In the beginning of 2002, the price of light crude oil was at $20 for a barrel. It climbed to more than $70 at the close of august 2006 in the wake of hurricane Katrina.

The release of 6 missiles in mid-2008 also caused the price of oil to rise to $78. At the writing of this article, the price of oil fluctuates within the range of $70 to $78 per barrels. May God help the common man on the raise of the prices of light crude oil and may God help USA and Iran to come to good terms because that will lower the prices of crude oil.

Diverging touchstones of crude oil in different countries

In US

The trenchant designation of heavy and light crude oil diverges. This is as a result of the categorization of crude oil which is founded mainly on practical bases more than theoretic. The New York Mercantile Exchange sets light crude oil which is produced in the US as containing an API gravity ranging from 37 degrees to 47 degrees. It determines the light crude oil which is produced outside the US as ranging from 32 degrees to 42 degrees.

In Canada

The government agency in Canada which is responsible for energy referred to as NEBC sets light crude oil as containing a density lower than 30.1 degrees.

In Mexico

Pemex which is an oil agency own by the Mexico government sets light crude oil as containing a specific API gravity of 27 degrees to 38 degrees.

Reasons for the variation of light crude oil

The difference for each country acceptance of the right standard for light crude oil varies due to countries like Mexico and Canada are likely to deliver heavier crude oils more than the types which are usually seen in the United States of America. From the beginning of the production of light crude oils, a lot of big oil wells in the USA generate lighter crude oil which is better than the ones found in most of oil producing countries.

Summary

To summarize this article, USA produces the best type of light crude oil and Saudi Arabia may be the highest producer of light crude oil.

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