Physical Crude Oil Trading
Physical crude oil trading is the buying activity that refiners use to acquire raw crude feedstock for refineries. Refineries will buy crudes on the global market that meet their refining requirements. Integrated majors will not only refine their own equity crudes, they will also buy crudes on the global market when the economics are better. The majors may get better-refined margins buying cheaper crudes on the global market than refining their own crudes. Integrated majors may purchase crudes that are heavier and have higher sulfur content, because these crudes are less expensive than the lighter, sweeter crudes.
The integrated majors have world-class refineries with the units necessary to economically transform heavier ...
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