Inventory Levels
Crude oil prices are affected by many elements in the marketplace. Availability of crude oil supply is foremost among key drivers of price differences among different grades of crude oil. For example, Nigerian crude oil Bonny Light has a very desirable American Petroleum Institute (API) gravity of approximately 33.6 degrees. The benchmark crude oil—WTI—has an API gravity of approximately 38.7 degrees both API's are according to Energy Intelligence Group data. Which crude oil is priced higher? At first glance, one may be inclined to select a benchmark index crude such as WTI, but supply of Bonny Light is often challenged by disruptions in the transport process. As such, Bonny Light can occasionally command a higher price than ...
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