The Crude oils are the base for lots of products. These include transportation fuels such as Gasoline, Diesel, and Jet fuel. They also include fuel oils used for heating and electricity generation. Crude oils are traded based on benchmarks.
Crude oil is referred to as either light, medium, or heavy, based on its density. The American Petroleum Institute gravity, commonly shortened to API gravity, compares the density of crude to water. An API gravity higher than 10 means the oil is less dense than water and will float on it. An API gravity lower than 10 means the oil is denser than water and will sink in it. When referring to oil, an API gravity greater than 31.1 degrees is considered light. An API gravity between 22.3 degrees and 31.1 degrees is considered medium. An API gravity between 10.0 degrees and 22.3 degrees is considered heavy. Finally, an API gravity of less than 10.0 degrees would be considered extra heavy. The following shows the classifications for crude oil density:
Sweet crude refers to crude oil that is extracted that is found to contain very low amounts of sulfur. It is considered a valuable and efficient source of crude oil due to the fact that sulfur lowers the yield of various refined petroleum products such as gasoline, diesel fuel, and even plastics.
Sour crude is a type of crude oil known for its relatively high sulfur content. The presence of sulfur makes oil more difficult and costly to refine, causing sour crude to be viewed as a less desirable form of crude oil.
The Main Benchmarks
There are dozens of different oil benchmarks, with each one representing crude oil from a particular part of the globe. However, the price of most of them are pegged to one of the following three primary benchmarks:
Brent Crude
Roughly two-thirds of all crude contracts around the world reference Brent Crude, making it the most widely used marker of all. These days, “Brent” actually refers to oil from four different fields in the North Sea: Brent, Forties, Oseberg, and Ekofisk. Crude from this region is light and sweet, making them ideal for the refining of diesel fuel, gasoline, and other high-demand products. And because the supply is waterborne, it’s easy to transport to distant locations.
West Texas Intermediate (WTI)
WTI refers to oil extracted from wells in the U.S. and sent via pipeline to Cushing, Oklahoma. The fact that supplies are land-locked is one of the drawbacks to West Texas crude as it’s relatively expensive to ship to certain parts of the globe. The product itself is very light and very sweet, making it ideal for gasoline refining, in particular. WTI continues to be the main benchmark for oil consumed in the United States.
Dubai/Oman
This Middle Eastern crude is a useful reference for oil of a slightly lower grade than WTI or Brent. A “basket” product consisting of crude from Dubai, Oman or Abu Dhabi, it’s somewhat heavier and has higher sulfur content, putting it in the “sour” category. Dubai/Oman is the main reference for Persian Gulf oil delivered to the Asian market.
We supply Crude oils from different countries, therefore there is a wide range of offer for our clients. Full Specification of the product will be attached with the official Soft Corporate Offer (SCO) and the Commercial Invoice (CI).
| Supply Capacity | Min 50.000 MT - Max 500.000 MT / month |
| Supply Period | SPOT or 12 months contract with R&E |
| Loading Port | Fujairah (UAE) - Russian Ports - Bonny Terminal (Nigeria) |
| Origin | Russian Origin - Arab Light Crude - Nigeria (Bonny) |
| FOB Delivery | Fujairah (UAE) - Russian Ports - Bonny Terminal (Nigeria) |
| CIF Delivery | Any Safe World Port - ASWP |
| Payment Term | SBLC - LC - MT103 - T/T |