Light crude oil

Varying standards

The clear cut definition of light and heavy crude varies because the classification is based more on practical grounds than theoretical. The New York Mercantile Exchange (NYMEX) defines light crude oil for domestic U.S. oil as having an API gravity between 37° API (840 kg/m3) and 42° API (816 kg/m3), while it defines light crude oil for non-U.S. oil as being between 32° API (865 kg/m3) and 42° API (816 kg/m3). {{cite web The National Energy Board of Canada defines light crude oil as having a density less than 875.7 kg/m3 (API gravity greater than 30.1° API). {{cite web |url-status=dead The Mexican state oil company, Pemex, defines light crude oil as being between 27° API (893 kg/m3) and 38° API (835 kg/m3).{{cite web

Examples of light crude oils

A wide variety of benchmark crude oils worldwide are considered to be light. The most prominent in North America is West Texas Intermediate which has an API gravity of 39.6° API (827 kg/m3). It is often referred to by publications when quoting oil prices. The most commonly referenced benchmark oil from Europe is Brent Crude, which is 38.06° API (835 kg/m3). The third most commonly quoted benchmark is Dubai Crude, which is 31° API (871 kg/m3). This is considered light by Arabian standards but would not be considered light if produced in the U.S.

The largest oil field in the world, Saudi Arabia's Ghawar field, produces light crude oils ranging from 33° API (860 kg/m3) to 40° API (825 kg/m3)

U.S. price

In the United States, the price of the front month light sweet crude oil futures contract, traded on the NYMEX commodity exchange (symbol CL), is widely reported as a proxy for the cost of imported crude oil. These contracts have delivery dates in all 12 months of the year. From below $20 a barrel in early 2002, it rose to an intraday peak of $70.85 at the end of August 2005 in the aftermath of Hurricane Katrina. A new intraday record high of $78.40 was set on July 14, 2006, prompted by the firing of at least six missiles by North Korea on July 4–5, 2006, and escalating Middle East violence.

Subsequently, the price declined until on October 11, 2006, the price closed at $66.04. But, by August 2007, the price had reached a record high of $78.71, amid production output concerns in the North Sea and Nigeria. On November 29, 2007, the price peaked at $98.70 intraday after closing at $98.03 the previous day. The price of light crude set a new intraday high on May 21, 2008, of $133.45 and closed at $133.17. A new high was reached on July 11, 2008, as prices temporarily reached $147.27 a barrel.

Trading

Light crude oil is traded on the CME Globex, CME ClearPort, (CME Group) and Open Outcry (New York) futures exchange venues and is quoted in U.S. dollars and cents per barrel. Its product symbol is "CL" and its contract size is 1000 oilbbl with a minimum fluctuation of $0.01 per barrel.

Notes

References

1. [[Wikinvest:List of Commodity Delivery Dates. List of Commodity Delivery Dates on Wikinvest]]
2. "Light Crude Oil (CL, NYMEX)".
3. "Light Sweet Crude Oil (WTI)". CME Group.
4. and