What is LLS crude?
What is LLS crude?
Light Louisiana Sweet (LLS) at the US Gulf coast is quickly rising in importance as a secondary benchmark supplementing the traditional benchmark WTI. The price of refined products across the entire US more closely tracks Gulf coast crude than midcontinent crude.
Why is WTI Brent spread narrowing?
“Local demand is rebounding sharply while shale producers remain disciplined, with the U.S. and Canada set to deliver this summer a net reduction in crude exports to the global market larger than Saudi’s unilateral cut earlier this year,” the bank added. …
Why is WTI Brent spread important?
WTI and Brent are two important benchmark prices for oil market. Their long-term co-integrated relationship helps them to be a good location spread in the world oil market (Dempster, et al., 2008). Many sellers and buyers count on these two benchmark prices to judge the market situations and make better decision.
Can I invest in Brent crude?
Brent crude is used as a benchmark to price two-thirds of the world’s internationally traded crude oil supply. You can add Brent crude to your portfolio by trading it on the commodities exchange or investing in options or exchange-traded funds.
What is Louisiana light oil?
Light crude oil is liquid petroleum that has a low density and flows freely at room temperature. It has a low viscosity, low specific gravity and high API gravity due to the presence of a high proportion of light hydrocarbon fractions.
Was WTI or Brent higher?
Although considered both light and sweet, Brent is slightly heavier than WTI, with an API gravity of 38.06 and a sulfur content of 0.37%. During the latter half of 2017, the price spread between Brent and WTI reached as high as $8 per barrel.
What does Brent stand for?
Brent is also the name of an oil field located in the North Sea off the coast of Scotland, which was discovered in 1971 and started production in 1976. Brent is an acronym for Broom, Rannoch, Etive, Ness and Tarbert – the five geological formations that form the Middle Jurassic field.
Why is Brent oil more expensive?
Brent Steals the Crown Why is Brent crude more expensive than WTI? Brent essentially draws its oil from more than a dozen oil fields located in the North Sea. It’s also still considered a sweet crude, despite having a higher sulfur content than WTI.
Is trading in crude oil profitable?
Crude oil trading offers excellent opportunities to profit in nearly all market conditions due to its unique standing within the world’s economic and political systems.
Is it a good idea to invest in oil?
Investing in the oil and gas industry carries a number of significant risks. However, long-term investments in oil and gas companies can also be highly profitable. Investors should fully grasp the risks before making investments in the sector.
What was the crack spread for LLS in 2010?
LLS is a crude oil processed by a number of U.S. refineries and has characteristics similar to those of WTI. In 2010, the WTI and LLS 3:2:1 crack spreads were about $9 per barrel and $5 per barrel, respectively.
Why are crack spreads based on LLS crude oil?
Crack spreads based on LLS provide a better margin estimate for Gulf Coast refineries. Historically, such distinctions were not necessary as the prices of WTI and other similar crude oils moved together.
What is the crack spread for Louisiana light sweet oil?
Using a WTI crack spread for a refinery that uses other crude oils, like Louisiana Light Sweet (LLS), has become misleading. Through October 27, 2011, the 3:2:1 crack spread based on WTI has averaged almost $27 per barrel in 2011, while the same spread based on LLS crude oil has only averaged about $8 per barrel.
Why are LLS and WTI prices so high?
The WTI-LLS difference reached record levels in 2011 as a result of both WTI weakness and LLS strength. WTI prices have shown persistent weakness after inventories piled up early in the year because of increased crude oil flows into Cushing from the Bakken shale formation and from Canada.
What is LLS crude? Light Louisiana Sweet (LLS) at the US Gulf coast is quickly rising in importance as a secondary benchmark supplementing the traditional benchmark WTI. The price of refined products across the entire US more closely tracks Gulf coast crude than midcontinent crude. Why is WTI Brent spread narrowing? “Local demand is rebounding…