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About the Author
Why does light sweet crude sell at a premium to heavy sour crude?
If heavy crude takes more refining to process it, why is light crude more expensive? Is this from a refiner's point of view?
Yes it takes special equipment to handle sour crude, and you end up
selling the same refined product (the petrol) at the same rate regardless
of where you started. Since the primary purchasers of crude are the
refiners, there are more bidders for the light sweet and that tends to
drive the price up. Not all refiners can handle sour and those that do
need to maintain their profits, hence they bid lower on the sour to
make up for the extra costs of handling it.
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