Refineries Paying Record Premiums for Top Grade Crude

"The Financial Times reports today that refiners are paying prices higher than those indicated by the futures market for the lightest, meaning best, grades of crude oil. This points to an issue raised in an earlier post, namely, that to the extent oil supplies are tight, it's due to demand for sweet crude, which has become more sought-after due to tightening environmental standards. Another factor mentioned by the Financial Times is insufficient refinery capacity to refine heavier grade "sour" crude into diesel."