1. Review the World bank study on crude oil price differential. Select two different types of crude oil products. Research historical price data for these products for numerous periods (either a few years or many months). Use the World Bank regression, along with other market data to explain the differences in prices. http://documents.worldbank.org/curated/en/673981468778803478/Crude-oil-prices-Predicting-price-differentials-based-on-quality
Provide background to your analysis, including explaining the economics observed and any learned observations. Cite sources and calculations. Include excel source workpaper. Etc. It is acceptable to make a reasonable assumption about the crude quality for the crude oil based on a point in time based on the observed data. It does not require a detailed analysis. Please state your assumption and cite sources.
Market data on crude oil prices is readily available via government sources and other public resources. Market data on crude quality, which is a bit more challenging to find, can be found through numerous sources, including the following:
https://www.crudemonitor.ca/ (Links to an external site.)
https://www.crudemonitor.us/ (Links to an external site.)
https://corporate.exxonmobil.com/en/crude-oils/crude-trading/crude-oil-blends-by-api-gravity-and-by-sulfur-content#aPIGravity (Links to an external site.)
https://www.equinor.com/en/what-we-do/crude-oil-and-condensate-assays.html (Links to an external site.)
2. Conduct a netback analysis from a refinery location anywhere and the world and provide an example with actual market data, including all assumptions, price and cost components and explain what the refinery’s (or trading firm buying at the refinery location_ best alternative sales market is and why. Provide source references and summarize.
Provide background to your analysis, including explaining the economics observed and any learned observations.
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