Question
Use the information for the question below. Alaska North Slope Crude Oil (ANS) $71.75/Bbl West Texas Intermediate Crude Oil (WTI) $73.06/Bbl As an oil refiner,
Use the information for the question 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
10,100 Bbls
of Alaska North Slope (ANS) crude oil for
9,950 Bbls
of West Texas Intermediate (WTI) crude oil. Assuming you currently have
9,950 Bbls
of WTI crude, the added benefit (cost) to you if you take the trade is closest to:
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