Light crude oil has low specific gravity, low viscosity, and high API gravity. It contains high percentages of compounds that can be refined into gasoline and fuel oil, making it more valuable than heavy crude oil. WTI, Brent Crude, and Dubai Crude are considered light crude. Light and sweet crude oil is the most valuable type in commodity markets due to its ease of refining and high percentage of gasoline and fuel oil.
Light crude oil is a type of natural hydrocarbon characterized by low specific gravity, low viscosity, and high gravity by the American Petroleum Institute (API). This liquid petroleum substance also has a relatively low density compared to other crudes and contains high percentages of compounds that can be refined into gasoline and fuel oil. Light crude oil, due to its composition, tends to be worth more money than heavy crude oil. There are several standards that can be used to define what exactly constitutes light crude oil, and several benchmarks are also used. West Texas Intermediate (WTI), Brent Crude and Dubai Crude are generally referred to as light crude, despite having slightly different API severity levels.
Crude oil is a type of liquid oil that is typically recovered through drilling activities. There are two main categories that can be used to differentiate crudes: weight and sulfur content. The lack of sulfur in crude oil typically causes it to be referred to as “sweet,” and crude that contains a lot of sulfur might be called “sour.” Oil can also be heavy or light based on its physical properties. Viscosity and specific gravity are two values that can determine whether it is heavy or light, although API gravity is a measurement that applies specifically to oil.
Whether crude oil is considered light may also depend on where in the world it is produced. The commonly used benchmark for light crude in the US is WTI, with an API of 39.6. Brent Crude which is produced in northern Europe and Dubai Crude from the Persian Gulf are both considered light even though they each have a lower API gravity than WTI. A lower API corresponds to heavier oil, so Dubai crude is actually too heavy at 31 API to be called light if it were produced in the US or Europe rather than the Persian Gulf.
The most valuable type of crude oil available in the commodity markets is typically light and usually sweet. The high API gravity and lack of sulfur in this oil make it easier to refine than heavier oils and allow for higher percentages of gasoline and fuel oil to be recovered. Gasoline and diesel are some of the most desired products that are created in the refining process, so light crude oil typically produces more profitable results than other types of crude.
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