"Heavy-sour crudes are likely to remain unusually costly compared to light-sweet varieties for years, potentially hurting U.S. refiners like Frontier Corp. (FTO.N) and Valero Energy (VLO.N) that invested heavily in heavy-sour refining, Credit Suisse analysts said on Thursday.
Higher global refinery demand for heavy crudes and a likely boost in Saudi Arabia's production of lighter oil mean prices for heavy and sour crudes - normally cheaper to purchase but costlier to refine - should remain strong through 2010 or longer, Credit Suisse said in a report..."
The tight spread is good news for at least Baytex Energy Trust(NYSE:BTE).
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