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Author Question: Use the information for the question(s) below.Alaska North Slope Crude Oil (ANS)$71.75/BblWest Texas ... (Read 56 times)

colton

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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.


Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil.  Assuming you currently have 10,000 Bbls of WTI crude, the added benefit (cost) to you if you take the trade is closest to:
◦ ($1400)
◦ $1400
◦ ($3908)
◦ $3908


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Marked as best answer by colton on Jul 9, 2019

Tonny

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