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OPEC: Refinery mismatch strains crude price

Oil & Gas Journal

The result, OPEC says, is a widening price differential between light and heavy crude grades. The difference in price between heavy Maya crude and West Texas Intermediate, for example, has grown from about $8/bbl in June 2007 to more than $20/bbl at the beginning of May.

"The persistent mismatch between the product demand pattern and the refinery configuration has focused further upward pressure on light crude prices," OPEC says. "Downstream constraints are continuing to contribute to the high risk premium for these grades, leaving the market increasingly sensitive to any disruption in light crude supplies."