Heavy crude oil has higher density and viscosity compared to light crude, typically with API gravity below 22 degrees. Heavy crude requires more complex refining processes and yields different product mixes compared to light crude, often trading at discounts to benchmark light crude prices. Major heavy crude grades include Canadian oil sands, Venezuelan heavy crude, and Mexican Maya crude.

Heavy crude pricing reflects refining complexity, transportation challenges, and limited refinery capacity capable of processing these grades. Environmental regulations and carbon pricing increasingly affect heavy crude economics due to higher processing emissions. Understanding heavy crude differentials and refining economics is crucial for oil market analysis and energy trading strategies.

Real-world example: Canadian heavy crude trades at a $15 per barrel discount to WTI light crude due to higher refining costs and pipeline capacity constraints, creating opportunities for refiners equipped to process heavy grades.