The World’s Most Expensive Oil

10 Jan 2018   Prices

When asked about the most expensive oil grade out there, those working in the oil industry are caught blindsided because there’s no easy way to answer this question. The price of crude oil is determined by its physical characteristics (low-density, low-sulphur grade blends generally cost more, but there are several exceptions to this rule), classic supply-demand conditions, distance from main marketing outlets and trading hubs, potential risks and general market sentiment. To make matters even more complicated, speculation plays a major part in price-setting, since the volume of futures trading significantly exceeds that of physical volumes. So it is possible to pinpoint the world’s most expensive oil? First, it’s helpful to start by identifying the cheapest crude on the market today. Oil traders often receive offers to buy unknown grades from countries that one could never even associate with oil production, so it’s sensible to focus on established oil […]

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