What does Light Crude Oil mean?
A type of liquid petroleum that has a low density and viscosity that is used by oil refineries to produce gasoline and diesel. The most well-known light crude oil in North America is West Texas Intermediate which is a light sweet crude oil with a API gravity of 39.6.
Futures Knowledge Explains Light Crude Oil
Light Crude Oil has a higher API gravity and low specific gravity with the cutoff varying based on region. For example, the NYMEX determines that light crude oil must have a API gravity of 37 and 42 for U.S. oil and 32 and 42 for non-U.S. oil.