Slide 11 of 25
Notes:
- Similar light-heavy price difference trends are seen in both the crude oil and the
product markets.
- However, there are some short-term product market changes that are not reflected in the
crude oil market.
- Is it the crude oil market or the product market that is the primary driver behind the
light-heavy differences? Differentials can be driven by changes from either the crude oil
or the product side. For example, a lot of light crude oil supply shrinks the
differentials, and a decline in heavy product supply (i.e., residual fuel) also narrows
the differences.
