Must know The WTI Brent oil spread reacts to falling crude


COMMENTARY ON THE INABILITY OF THE TEMA OIL REFINERY TO REFINE CRUDE OIL PRODUCED IN GHANAThe call by the chairman of the mines and Energy Committee of Parliament, Dr. Kwabena Donkor for government to activate clauses in the oil contract to allow Tema Oil Refinery to refine crude oil from the jubilee fields in the next five years, is important and must be considered.The call is consistent with the view that we should not only be producers of raw materials, but also add value to our raw materials to rake in more revenue.But should this call be made at this late hour.

Is it not ironical that Ghana produces Gold, but cannot boast of a gold refinery. A fossil fuel, petroleum is formed when large quantities of dead organisms, usually zooplankton and algae, are buried underneath sedimentary rock and subjected to both intense heat and pressure.Petroleum has mostly been recovered by oil drilling (natural petroleum springs are rare). WTI represents the price oil producers receive in the U.S. and Brent represents the prices received internationally.

The two crude oils share a similar quality. However, off late, the prices have differed greatly between the two crudes because the recent production surge in the U.S. caused a buildup of crude oil inventories at Cushing, Oklahoma, where WTI is priced. This created a supply and demand imbalance at the hub, causing WTI to trade lower than Brent.




Must know The WTI Brent oil spread reacts to falling crude

Know WTI Must The crude reacts to Brent falling oil spread