Liquid petroleum pumped from oil wells is called crude or crude oil. Your complete, stepbystep guide to crude oil trading kindle edition by justin adams. List of crude oil products ebooks read ebooks online. Crude oil is classified as light, medium, or heavy according to its measured api gravity.
Simpler to refine into motor fuels will yield a higher quality of useful products. Crude oil also contains varying amounts of oxygen, sulfur, nitrogen, and helium. A detailed guide on the many different types of crude oil. Api gravity is the oil industry standard used to determine and classify the density of oil. Only a handful of those grades can be called benchmark or marker grades. In general oils with api gravity of 40 45 generate the highest market prices.
Crude oil is considered heavy if it has long hydrocarbon chains, or light if it has short hydrocarbon chains. If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. Crude oil with low content of sulfur means sweet and the presence of high content sulfur is known as sour. In contrast, wcs is a heavy crude oil with an api gravity level of 20. The indicator gives an overview of us petroleum demand. Crude oils have different quality characteristics today in. The next code to look for is the api service classification.
Domestic crude oil first purchase prices by api gravity dollars per barrel. Horizontal drilling and multistage hydraulic fracturing are now utilized to access oil and natural gas resources from shale rock formations that were. It is a common belief that wti is higher quality crude and it is always priced at a premium compared to brent. When using ck4 oil with higher than 15 ppm sulfur fuel, consult the engine manufacturer for service interval recommendations. There are over 160 types of crude oil traded on the market, but it is brent crude and wti west texas intermediate that serve as the foremost oil benchmarks in the global markets. As the worlds primary source of energy, crude oil is a highly demanded, highly traded and very liquid commodity. The very low sulfur content of bonny light crude makes it a highly desired grade for its low corrosiveness to refinery infrastructure and the lower. Use the scroll bar on the right to locate the name. There are three primary benchmarks, west texas intermediate wti, brent blend, and dubai crude. The program certifies that engine oil meets certain original equipment manufacturer oem quality and performance standards. Api steel grades for tubing and casing api standards for casing and tubing. Thanks to its broad accessibility and ability to continuously evolve such as the incorporation of new grades, brent has become the global crude oil benchmark.
Crude oil heating to dehydrate most crude oils grades of crude oil. After decades of decline, crude oil production in the united states has recently. In the international petroleum industry, crude oil products are traded on various oil bourses. Bonny light oil is a high grade of nigerian crude oil with high api gravity low specific gravity, produced in the niger delta basin and named after the prolific region around the city of bonny.
The figure shows how much oil and product is available in storage. Brent crude an important oil benchmark, brent crude refers to oil that comes from fields in the north sea and includes brent and forties blends, and oseberg and ekofisk. The accuracy and completeness of the classifications depend on our. Crude oil blends by api gravity and by sulfur content. One of the largest and major classifications of crude oil is brent blend, which is found in the north sea. Api gravity moves inversely to density, which means the denser an oil is, the lower its api gravity will be. In addition to fueling our suvs and illuminating our cities, crude oil and its byproducts fertilize. This listing represents the names of the over 3,500 crude grades currently residing in the cims database. The delivery locations are usually sea ports close to the oil fields from which the crude was obtained and new fields. Products complied with api standards are always thought of reliable quality. Crude oil comes in hundreds of different varieties or grades.
From crude oil stocks to crude oil futures discover stepbystep how to trade crude oil this book is the ultimate guide to crude oil trading in this book, youll learn how the crude oil market works and how crude oil differs from other commodities. Bonny light oil is a high grade of nigerian crude oil with high api gravity low specific gravity, produced in the niger delta basin and named after the prolific region around the city of bonny the very low sulfur content of bonny light crude makes it a highly desired grade for its low corrosiveness to refinery infrastructure and the lower environmental impact of its byproducts in refinery. The three most quoted oil products are north americas west texas intermediate crude wti, north sea brent crude, and the uae dubai crude, and their pricing is used as a barometer for the entire petroleum industry, although, in total, there are 46 key oil exporting countries. For automotive gasoline engines, the latest engine oil service category includes. The chemical profiles, or crude oil assays, specify important properties such as the oils api gravity.
These grades are valued differently by refiners based on their crude qualities some of the more common crude oil grades that have regular price assessments are. With information on over 3,500 crudes click to see the list of crudes and crude components, data is updated on a regular basis. Any oils with api gravity of 45 or over have shorter molecular chains which are less desirable to refineries. Crude oil classification by the national petroleum. The delivery locations are usually sea ports close to the oil fields from which the crude was obtained, and the pricing is usually quoted based on fob. And sa is not hard to find mixed in with sm on the shelves at cstores and others. Density is an integral part of determining the value of oil, where light oils command a higher price due to the ease with which they are converted to gasoline. Additionally, cims keeps track of new discoveries and new field developments.
Api gravity a measure of density and sulfur content. The american petroleum institute api is the only national trade association that represents all aspects of americas oil and natural gas industry. Cims monitors crude quality for existing grades and alerts subscribers to changes. Wti is the benchmark of all us oil and it is traded on the nymex exchange.
Domestic crude oil first purchase prices by api gravity. It provides a crosssectional view of the distillable portion of a crude oil, employing for this purpose numbers or indexes that represent the average boilingpoint and specificgravity characteristics of the distilled fractions. To find a crude, click in the box and type the first letter of the crude name. Api, shorted for american petroleum institute, is considered as one of the most authoritative and comprehensive principles for oil and gas industry. An api of 10 is equivalent to water, which means any oil with an api above 10 will float on water while any with an api below 10 will sink.
Crude oil trading cfds trading conditions avatrade. Both edmonton par and western canadian select are highquality low sulfur crude oils with api gravity levels of around 40. Brent blend is a combination of crude oil from 15 different oil fields in the north sea. Oil pares gains after api reports surprise crude inventory build. Composed predominantly of carbon, crude oil contains approximately 84 to 87 percent carbon and 11 to percent hydrogen.
Looking ahead, crude oil traders will focus on inventory flow data from api. In the international petroleum industry, crude oil products are traded on various oil bourses based on established chemical profiles, delivery locations, and financial terms. Trading crude oil as a cfd at avatrade comes with many benefits including the following. Specifications guide asia pacific and middle east crude oil. Other wellknown blends include the opec reference basket used by opec, tapis crude which is traded in singapore, bonny light used in nigeria, urals oil used in russia and mexicos.
Whereas the labeling on the bottle of engine oil may suggest the product is a 5w30, note, if there is no w between the 5 and the 30 it may not be a 5w30. The american petroleum institute reports inventory levels of us crude oil, gasoline and distillates stocks. The density of crude oil and liquid hydrocarbons is usually reported in terms of specific gravity sg or relative density, defined as the density of the liquid material at 60f 15. Our more than 600 corporate members, from the largest major oil company to the smallest of independents, come from all segments of the industry. The following specifications guide contains the primary specifications for platts crude oil assessments in asia pacific and the middle east. The united states geological survey uses slightly different ranges. Characteristics of crude oils quality properties determine the market value of each type of crude. Growing, global regulation avatrade is an international, regulated broker. Crude oils that are light higher degrees of api gravity, or lower density and sweet low sulfur content are usually priced higher than heavy, sour crude oils. Cooper 2003 arrive at longrun demand elasticities for crude oil of 0. The api ranges from light crudes high api, low density to heavy crude oils low api, high density. Fourteen type crude oils originated from usa, mexico, africa, middle east, russia, canada,colombia, ecuador, and venezuela having density and sulfur in the range api 12.
This is partly because gasoline and diesel fuel, which typically sell at a significant premium to residual fuel oil and other bottom of the barrel products, can usually be more. An introduction to petroleum refining and the production of ultra low sulfur gasoline and diesel fuel prepared for. Classifications of crude oil international marine consultancy. Global crude pricing and benchmarks there are approximately 550 global crude oil streams that can be identified as individual grades with a multiplicity of qualities and prices. As an example, a 530 is not the same as an sae 5w30. A detailed guide on the many different types of crude oil oilprice. Gf6b, current, applies only to oils having an sae viscosity grade of 0w16. A benchmark crude or marker crude is a crude oil that serves as a reference price for buyers and sellers of crude oil. North american crude oil futures grades wti, argus, tmx.
Last week, the american petroleum institute api reported a huge draw of 5. Crude is the unexpurgated story of oil, from the circumstances of its birth millions of years ago to the spectacle of its rise as the indispensable ingredient of modern life. Apis weekly statistical bulletin wsb has reported total u. The canadian crude index cci serves as a benchmark for oil produced in canada. Read, highlight, and take notes, across web, tablet, and phone. This ensures client funds are safe and secure, and that all trading services offered are transparent, top quality and ethical, in accordance with the regulations outlined by the. Density is defined as mass per unit volume of a fluid. Horizontal drilling and multistage hydraulic fracturing are now utilized to access oil and natural gas resources from shale rock formations that were previously either technically impossible or uneconomic to produce. Crude oil prices look to api inventory data for direction.
The service rating of passenger car and commercial automotive motor oils is classified by the american petroleum institute api. After decades of decline, crude oil production in the united states has recently been increasing rapidly. In addition to fueling our suvs and illuminating our cities, crude oil and its byproducts fertilize our produce, pave our roads, and make plastic possible. Worldwide crude grades by country product name api specific gravity sulphur content as % of mass operating company location of field port of sale pennington 35 0. Youll learn about the key factors that drive the price of crude oil. So if you buy an engine oil meeting only api sa, its an engine oil formulated for use in vehicles built in the 1920s. The ice brent crude future is based on a basket of waterborne north sea crude grades known as brentfortiesosebergekofisk bfoe. It specifies the viscosity grade required for your cars engine. The most important quality characteristics are the density, the total acid number tan and the sulphur content. Oil pares gains after api reports surprise crude inventory. Api degree is inversely related to the density of crude oil.
Domestic crude oil first purchase prices by api gravity dollars per barrel period. Culzean is a new grade of light crude oil from the north sea. Opec basket of oil from 7 countries is the sourest, at present the api gravity for the basket is heavier, at 32. Classifications of crude oil home international marine. Crude is considered sweet if it is low in sulphur content 1. In general, crudes of api between 4045 degrees can be sold at greatest commercial values.
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