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West Texas crude oil is what is always being quoted when you’re looking at the “price of a barrel of oil” and it has always been a more premium grade of oil, but because of our economic problems in the states, inferior grades from around the world cost more than our abundant West Texas oil.

The recession in America has dramatically cut demand for crude oil, and inventories are piling up. So prices for West Texas crude have fallen well below what oil costs from places like the North Sea, Saudi Arabia and South America.

That foreign oil sells in some cases for $10 more per barrel — and that doesn’t even include shipping.

Brent North Sea crude, which feeds some East Coast refineries — and therefore winds up at many gas pumps around America — now costs about $7 more per barrel than the West Texas crude. Deutsche Bank analysts say the trend should continue.

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Jeremy

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