US crude that's worth less than nothing

The oil glut is so bad in the US that one buyer said it will have to be paid to take North Dakota’s low-quality crude.

The price list of Flint Hills Resources, a refining company owned by billionaire brothers Charles and David Koch, puts the price of North Dakota Sour at -$0.50 a barrel. This is a high-sulfur grade of crude, and in January 2014 cost $47.60, which is almost $20 more expensive than today’s price of the Brent benchmark.

High-sulfur oil is only a small part of North Dakota’s crude production at less than 15,000 barrels per day, John Auers, executive vice president at Turner Mason & Co. in Dallas told Bloomberg.

High-sulfur oil is usually cheaper because it has to be transported to plants that have specific equipment to remove the sulfur when processing. 

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Continue Reading: https://www.rt.com/business/329313-oil-below-zero-north-dakota/