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
  • Enrolled Agent (EA)
    To become an EA, a person has to pass a three-part comprehensive IRS test of individual...
  • Par
    Let's assume Company XYZ issues $10 million in bonds to the public. It may do so by...
  • Speculation Index
    The AMEX tends to list riskier stocks issued by smaller companies that are starting up or...
  • Questioned Document Investigation
    Let's say John Doe dies and leaves behind a will giving everything to Sally Jones. Sally...
  • Minimum-Interest Rules
    Many companies and individuals make loans. These loans can occur in any amount and carry...