Light crude oil

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Light crude oil is crude oil with a low wax content. The clear cut definition of 'light' and 'heavy' crude is hard to find, simply because the classification so made is based more on practical grounds than theoretical. Since crudes with high viscosities are more difficult to transport/pump, those with apparently lighter wax content are referred to as 'light crude' and the ones with substantially more wax are classified as 'heavy crude'.

[edit] USA

In the United States, the price of the front month light sweet crude oil futures contract, traded on the NYMEX commodity exchange (symbol CL), is widely reported as a proxy for the cost of imported crude oil. From below $20 a barrel in early 2002, it rose to an intraday peak of $70.85 at the end of August 2005 in the aftermath of Hurricane Katrina. A new intraday record high of $78.40 was set on July 14 2006 fueled by firing by North Korea of at least six missiles on July 4-5, 2006 and escalating Middle East violence.

Subsequently, the price declined until on October 11, 2006, the price closed at $66.04. But, by August 2007, the price had reached a record high of $78.71, amid production output concerns in the North Sea and Nigeria. On November 29, 2007, the price peaked at $98.70 intraday after closing at $98.03 the previous day.^[1] The price of light crude set a new intraday high on May 21, 2008 of $133.45 and closed at $133.17. A new high was reached during 6th June 2008 as prices reached $139.12 a barrel. (BBC) ^[1]