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It is no coincidence that the bench mark oils, like North Sea Brent or West Texas, are light sweet crudes.
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These imbalance is due to the fact that light and sweet crudes have been more profitable as they require less processing to get to the market.
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Light, sweet crudes are cheaper to pump, transport, and distill and produce more gasoline per barrel than other types of crudes so it generally goes for more dollars per barrel than others.
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Further, world production of sweet light crudes has indeed peaked, which means the imbalance between production capacity and refining capacity will increase.
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There are those who have been arguing that the world production of sweet light crudes has either peaked is close to peaking.
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This means that the price the for sweet, light crudes is higher than other heavier or sour crudes.
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And the same will be true for the US. There is some mixture of light and heavy, sweet and sour, crudes which is optimal to provide the refined products the US desires to use.
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Refineries designed to distill sour crudes cannot distill sweet and vice versa.
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Some refineries are designed to distill sour crudes which cannot distill sweet and vice versa.
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As a result prices for sweet light crude tends to be higher than heavier or sour crudes.
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