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

Sour Crude

What it is:

Sour crude is a type of unrefined oil that contains sulfur.  It is difficult to refine and usually fetches a lower price.

How it works (Example):

Crude oil is considered sour when it has more than 0.5% sulfur. This and other impurites make sour crude difficult and costly to purify, so it is typically only used to produce diesel fuel rather than gasoline. 

Sour crude oil is usually compared to sweet crude oil which is low in sulfur and other impurities and is easy to refine.

Why it Matters:

Sour crude is the most common type found in Canada, the U.S., the Gulf of Mexico and Mexico. Sweet crude is the commodity of choice in futures markets.