<New and (insert adjective here) CAFE Standards The Oil Drum Wherein lies the military?>

18 comments on The Peak of Light Sweet Crude?

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Stuart Staniford on August 24, 2005 - 10:08am Permalink | Subthread | Parent | Comments top
I stand corrected! Although he can't be right on his timing (peak in 2004) if OPEC is correct that there was more light sweet in 2000 than 2004. At this point, I don't think we really have any clarity on when the peak, presumably, was. Sometime in the late 90s or early 2000s, probably.
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mw on August 24, 2005 - 10:40am Permalink | Subthread | Parent | Comments top
I also noted on the old Oil Drum site some time ago that the OPEC basket of oil continues to get heavier and sourer. Even then, does this mean anything? Indonesia has become net importer since.

http://www.opec.org/opecna/Press%20Releases/2005/pr082005.htm

    The new ORB is made up of the following: Saharan Blend (Algeria), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and BCF 17 (Venezuela).

    At present the API gravity for the new Basket is heavier, at 32.7º compared to 34.6 º for the previous basket of seven crudes. In addition, the sulphur content of the new Reference Basket is more sour at 1.77%, compared to the previous basket of 1.44%.

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wkwillis on August 24, 2005 - 10:52am Permalink | Subthread | Parent | Comments top
It's bad enough when our government is screwing with the inflation basket, now the market makers are screwing with our commodity baskets.
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mw on August 24, 2005 - 12:27pm Permalink | Subthread | Parent | Comments top
The energy market is a big market; it takes a lot of muscle to screw around with.  I personally think "speculation" plays a much smaller role in the high price of oil than is commonly believed.

Some "speculation" is as a result of hedging - oil BUYERS are buying because they believe prices will go higher; oil SELLERS (including oil producers), so far,  have been unwilling to unload their wares at lower prices.

Of course, some of this movement is caused by emotion and herd mentality too.

Markets are a supply and demand thing. Demand has outstripped supply and thus the futures contracts head higher. Someone believes in scarcity it seems.

Speaking of demand, US total product demand hit a new 1 year high in today's EIA report,  perhaps a new record high, still checking that one.

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18 comments on The Peak of Light Sweet Crude?

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