🛢️ Most people think oil = barrels.
In reality, oil = chemistry.
⚙️ API Gravity drives refinery economics:
📈 Higher API (lighter crude) → easier refining
📉 Lower API (heavier crude) → more processing & cost
Examples
🇮🇷 Iranian Light — 33–36° API
→ refinery sweet spot
🇻🇪 Venezuela Merey — ~16° API
→ heavy, complex refining
🇺🇸 WTI — ~40° API
→ very clean but often too light
⚡ Key point:
Many refineries run best on medium crude.
So disruptions at the Strait of Hormuz aren’t just about fewer barrels.
They remove the exact crude quality the system runs on.
🧠 Oil markets price chemistry, not just supply. ⚛️