INVESTMENT NEWS&IDEAS

The New Crude Oil Benchmark That Could Change a Oil Market’s Price Dynamics by Sheena Martin , Contributing Editor Tuesday, Nov 24, 2009 Earlier this month, a world’s largest oil writer set a list for a pierce divided from normal light, honeyed wanton oil. Saudi Aramco, a state-owned association of Saudi Arabia has motionless to dump West Texas Intermediate ( NYMEX: WTI ) as a basement for pricing a oil sole to a U.S. market. The Saudis labelled off WTI for fifteen years. Why? Well, utterly simply, WTI wanton oil is dangerously flighty – as evidenced by a dump from $150 per tub to $30 wanton over a past year. In a place, Saudi Aramco will begin regulating a Argus Sour Crude Index (ASCI), that measures heavier oil with aloft sulfur content. Traditionally, heavy, green wanton is cheaper than WTI. Heavy wanton requires additional estimate during a refinery to mislay impurities, that is because it’s discounted.

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The New Crude Oil Benchmark That Could Change a Oil Market’s Price Dynamics