Sweet Crude

AAA

DEFINITION of 'Sweet Crude'

A type of oil that meets certain content requirements, including low levels of hydrogen sulfide and carbon dioxide. Sweet crude gets its name if it contains less than 0.5% sulfur. Refiners prefer sweet crudes because of the low sulfur content and relatively elevated yields of high-value products, including gasoline, diesel fuel, heating oil and jet fuel.

INVESTOPEDIA EXPLAINS 'Sweet Crude'

Light sweet crude oil (WTI) futures and options are the most actively traded energy products in the world. WTI helps manage risk in the energy sector because the contract has the most liquidity, highest number of customers and excellent transparency. Both full-sized and e-mini futures contracts are traded on through the CME Group's CME Globex, CME ClearPort and Open Outcry (New York) trading venues.

RELATED TERMS
  1. Unconventional Oil

    A type of petroleum that is produced or obtained through techniques ...
  2. Crude Oil

    A naturally occurring, unrefined petroleum product composed of ...
  3. Proven Reserves

    After an oil exploration firm conducts a seismic survey on a ...
  4. Working Interests

    Refers to a form of investment in oil and gas drilling operations ...
  5. Oil ETF

    A category of exchange-traded funds that invest in companies ...
  6. Severance Tax

    A tax imposed on the removal of nonrenewable resources such as ...
RELATED FAQS
  1. What economic indicators are especially important to oil traders?

    Economic indicators are used by traders and investors in an attempt to understand the underlying fundamentals of the market. ... Read Full Answer >>
Related Articles
  1. Options & Futures

    A Guide To Investing In Oil Markets

    Find out how to take advantage of this market without having to open a futures account.
  2. Options & Futures

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
  3. Options & Futures

    Terrorism's Effects On Wall Street

    Terrorist activity tends to have a negative impact on the markets. Find out how to take cover.
  4. Insurance

    Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.
  5. Stock Analysis

    What Are Kinder Morgan’s Plans For Growth In 2016?

    One thing investors likely love about Kinder Morgan is its robust backlog of future projects, like growing its generous dividend by 10% per year.
  6. Stock Analysis

    What Has Been Delta Airlines Strategy To Soar?

    Airline stocks have soared over the past several years, and Delta Air Lines has been one of the leading airlines to reap the benefits. 
  7. Stock Analysis

    What Is Sempra Energy’s Future With LNG?

    Sempra Energy sees a very bright future for its LNG business, especially after its recently filed for approval to expand its Cameron LNG facility in LA.
  8. Options & Futures

    Avoid Future Shock By Protecting Your Portfolio With Futures

    Worried about protecting your portfolio of diversified stocks and assets? Using futures with correct strategies can help.
  9. Economics

    Iron Ore Market: Falling Into The Hands Of A Few

    The big iron ore mining companies have embarked on a drive to increase supply, reduce cost, and take market share.
  10. Stock Analysis

    Why Is Enterprise Products Partners So Excited?

    Enterprise Products Partners has historically gone on the offensive to acquire weaker rivals in a tough spot when the commodity market turns down.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center