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U.S. Gulf Refiners Feast on Domestic Oil

  • Refineries process the lightest crude since the 1990s
  • Record oil production makes oil too cheap to pass up
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U.S. light oil has become too cheap for Gulf Coast refiners to pass up.

Fuel makers on the Gulf, home to the largest cluster of refineries in the world, processed oil with an average API gravity of 33.06 in October, according to the Energy Information Administration. The measure of oil density matches a record set in February, when Gulf refiners processed the lightest crude in 26 years thanks to a surge in domestically produced light barrels.