Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Sweet Crude

What it is:

Sweet crude is a type of yet-to-be refined oil which contains minimal amounts of impurities.

How it works (Example):

Sweet crude oil meets standards for low levels of contaminants such as sulfur (below one percent). In addition, sweet crude oil is characterized by the presence of hydrogen sulfide and carbon dioxide, which make it versatile in the manufacture of kerosene, diesel fuel and especially gasoline.

Crude oil is usually compared to sour crude oil which is high in sulfur and other impurities and difficult and costly to refine.

Why it Matters:

The high quality nature of sweet crude oil make it versatile and easy to refine.  It is the most valuable grade of oil in the market. For this reason, it is a widely-accepted choice as an underlying commodity in the futures market.

Related Terms View All
  • Form 1099-Misc
    Let's say John Doe has a job at XYZ Company, but he freelances on the side for Company...
  • Closing Quote
    The New York Stock Exchange has the most famous closing bell (so famous that the term has...
  • Camouflage Compensation
    Let's say Company XYZ needs a new CEO. CEOs in the industry typically earn at least $1...
  • High-Deductible Health Plan (HDHP)
    Let's say John Doe has a high-deductible health plan. His policy has a $2,000 deductible...
  • Named Perils Insurance Policy
    For example, let's say John Doe owns a houseboat. His homeowners insurance policy does...