In the international petroleum industry, crude oil products are traded on various oil bourses based on established chemical profiles, delivery locations, and financial terms. KP Mahamanou Oil & Gas Limited actively participates in this global market, ensuring that the chemical profiles, or crude oil assays, meet stringent industry standards. These assays specify critical properties such as the oil’s API gravity, which plays a pivotal role in determining its market value. The delivery locations are typically seaports near the oil fields where the crude is extracted, with new fields continually being explored to meet global demand. Pricing is often quoted on an F.O.B. (free on board) basis, excluding final delivery costs.

The three most widely quoted oil benchmarks in the industry are North America’s West Texas Intermediate (WTI) crude, North Sea Brent Crude, and the UAE Dubai Crude. KP Mahamanou Oil & Gas Limited closely monitors these benchmarks, as their pricing serves as a barometer for the entire petroleum industry. In total, there are 46 key oil-exporting countries influencing the market. Brent Crude is typically priced around $2 above the WTI spot price, which itself is usually $5 to $6 higher than the EIA’s Imported Refiner Acquisition Cost (IRAC) and OPEC Basket prices. Both WTI and Brent are quoted F.O.B. specific locations rather than the oilfields themselves. For WTI, the delivery point is Cushing, Oklahoma, while for Brent, it is Sullom Voe, an island north of Scotland.

Crude oil assays evaluate a range of chemical properties, but the two most critical factors determining a crude’s value are its density (measured as API gravity) and its sulphur content (measured by mass). Crude oil is classified as “heavy” if it contains long hydrocarbon chains or “light” if it has short hydrocarbon chains. An API gravity of 34 or higher is considered “light,” between 31-33 is “medium,” and 30 or below is “heavy.” Additionally, crude is deemed “sweet” if it has a low sulphur content (< 0.5% by weight) or “sour” if the sulphur content is high (> 1.0% by weight). Generally, the higher the API gravity (the “lighter” the crude), the more valuable it is. KP Mahamanou Oil & Gas Limited leverages its expertise to navigate these complexities, ensuring optimal value and efficiency in the global crude oil market.