Wednesday, June 29, 2011

Is there a global shortage of Light Sweet Crude Oil?

"...the IEA’s release suddenly altered the supply and demand balance of the market.

Instead of a flood of heavy, sour oil from Saudi Arabia,
the market is now braced for the release of light, sweet oil from the emergency reserves.

...The collapse of the differential indicates that the release of the strategic reserves
is not only lowering the headline cost of oil,
but also the premiums that refineries were until a week ago paying
to secure scarce supplies of high quality, light sweet oil."

CNBC

If plenty of light sweet crude is being released by world governments,
why has the cost gone back up so quickly?

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NEWSBUSTED at NEWSBUSTERS.ORG 2-18-2015