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WTI (Cushing) isn't that big a stream -- only about 1 MMBD or 6-7% of US crude runs.

Is that a recent development? Is there a time when WTI(Cushing) was a larger proportion of US crude?

Is the real issue that light sweet crude is becoming an ever smaller fraction of the global oil market?

The economy needs to be thought of as a garden, not as a wild ecosystem

by Migeru (migeru at eurotrib dot com) on Tue May 29th, 2007 at 06:02:32 AM EST
[ Parent ]
Fairly recent.  WTI has faded slowly since the 70's while consumption has gone up up and away.  

Lt. Sweet supplies are indeed a problem.  But i think the current high prices are due to tight gasoline supplies and minimal reduction of demand.  We've had a big shutdown season + a couple of major falldowns.  That has gasoline on fire and therefore has gasoline crudes on fire (pricewise).  Couple that with Nigeria in a real mess and up up and away.

US refiners have been investing heavily in desulph capacity to make ULS Diesel, low S gasoline and to deal with heavier crudes.  But they didn't choose to keep the refining industry capacity in glut like it was from 1983-->2000 ish.

by HiD on Tue May 29th, 2007 at 06:41:24 AM EST
[ Parent ]
and that MS up there is wrong.  I meant MO = Missouri.  The only real refinery in MS is on the coast and is supplied by water for the most part.
by HiD on Tue May 29th, 2007 at 06:42:32 AM EST
[ Parent ]

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