Because there is so much excess capacity in the worlds refineries, because there is a fair range of capabilities in that excess capacity and because if there was not enough refining capacity to handle all the sour crude that is available, the price of sour crude would be selling at a greater discount to sweet crude than the current modest discount.

FORBES: Why I think Saudi Oil Production is now at Capacity

It supports my technical view that the current decline in crude oil should be a buying opportunity.

FORBES: Profit from Oil's Seasonal Low

This current chart compares the October crude oil futures with the Spyder Trust ( SPY).

FORBES: Get an S&P Edge from Crude Oil

Without it, the demand for crude oil would have risen beyond the current demand figures, thus driving up on prices as well as straining broader geopolitical relations.

FORBES: Will ConocoPhillips Help China Tap Its Shale Gas Reserves?

Very often, energy firms will search for as much crude as they believe economically recoverable at the current or projected price of oil.

FORBES: America's (Un)Peak Oil

Its current 50% discount off light, sweet crude was, until recently, unheard of.

FORBES: Magazine Article

As a result, higher crude prices fuel inflation, as well as widen both the fiscal and current account deficits.

WSJ: India Cuts Policy Rate

There currently appears to be sufficient supply of non-Iranian oil to permit foreign countries to significantly reduce their import of Iranian oil, taking into account current estimates of demand, increased production by countries other than Iran, inventories of crude oil and petroleum products, and available strategic petroleum reserves.

WHITEHOUSE: The White House

High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit.

FORBES: India