The price of light crude oil (LCO) is likely to be affected by incidents. The Gulf War fought in the Middle East was one of the incidents that caused the price of the light crude to skyrocket to a higher amount. Disasters like the hurricane Katrina also caused the light crude to increase. In the beginning of 2002, the price of light petroleum was at $ 20 for a barrel.
It climbed to more than $ 70 at the close of August 2006 in the wake of hurricane Katrina. The release of 6 missiles in mid-2008 also caused the price of oil to rise to $ 78. At the writing of this article, the price of oil fluctuates within the range of $ 70 to $ 78 per barrels. May God help the common man on the raise of the prices of light petroleum and may God help USA and Iran to come to good terms because that will lower the prices of crude.
Diverging touchstones of crude oil
In US: The trenchant designation of heavy and light crude diverges. This is as a result of the categorization of crude which is founded mainly on practical bases more than theoretic. The New York Mercantile Exchange sets light petroleum which is produced in the US as containing an API gravity ranging from 37 degrees to 47 degrees. It determines the light crude oil which is produced outside the US as ranging from 32 degrees to 42 degrees.
In Canada: The government agency in Canada which is responsible for energy referred to as NEBC sets light petroleum as containing a density lower than 30.1 degrees.
In Mexico: Pemex which is an oil agency own by the Mexico government sets light petroleum as containing a specific API gravity of 27 degrees to 38 degrees.
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Source by Ositadimma Muodozie
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