Light-Heavy Product Price Difference
Increases with Crude Oil Price
Source: Bloomberg spot price
This graph shows the relationship between crude oil price and prices of light and heavy products as represented by No.2 fuel oil and residual fuel oil prices.
In 2004, residual fuel price increased only a small fraction of the amount that crude oil and light product prices increased.
The high valued products like distillate rose as fast or faster than, crude oil price.
As a result the difference in price between distillate and residual fuel increased.
But this graph still does not easily show the relative movement between that light-heavy product price difference and crude oil.