By Bob van der Valk (Guest Post)
Saudi Arabia took notice about oil prices being in a bubble in March 2011 when they offered up 800,000 barrels of oil a day to replace the lost Libyan crude oil. One problem, it was the wrong type of oil and caused the Brent and WTI crude oil price spread to increase from $10 to $25 a barrel. The type of excess crude oil being offered is not the “sweet” crude oil typically refined by European oil companies. Instead it was “sour” crude oil, which ended being shipped to US refineries on the Gulf Coast, which were already facing an oversupply of the WTI grade type…
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