Alaska north slope crude oil

Reference no: EM13272935

Use the information for the question(s) below.
Alaska North Slope Crude Oil (ANS) $71.75/Bbl
West Texas Intermediate Crude Oil (WTI) $73.06/Bbl

As an oil refiner, you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude
oil. Because of its lower sulfur content, you can produce $77 worth of unleaded gasoline from one barrel of West Texas
Intermediate (WTI) crude.
1) Assuming you currently have 10,000 Bbls of WTI crude, the added benefit (cost) to you if you were
to sell the 10,000 Bbls of WTI crude and use the proceeds to purchase and refine ANS crude is
closest to:
1)
A) ($1,400) B) $1,400 C) ($3,908) D) $3,908

Reference no: EM13272935

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