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View Diary: BREAKING: New Gulf Oil Spill (98 comments)

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  •  what refiners pay is what matters (0+ / 0-)

    gasoline comes from refineries.

    What do the other companies pay? And to whom do they pay it? If the indices rise, are they paying more?

    Even less desirable crudes are pegged to indices such as Brent afaik.

    I find your argument that gasoline prices are not related to Brent crude prices really unconvincing. It's hard to call it an "argument" at all, frankly.

    An ambulance can only go so fast - Neil Young

    by mightymouse on Thu Apr 12, 2012 at 02:04:24 PM PDT

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    •  That's because you didn't even glance at my (0+ / 0-)

      diary and hence don't have any idea how the business works.

      Oil producers, integrated companies who both lift and refine oil, control the retail prices. They pay the owners of the oil royalties, prices only a fraction of the quotation prices for Brent and other benchmark crudes. Quotation prices such as those for Brent are used to determine transfer prices when trading unlike crudes, and for selling crudes to chemical companies and small independents.

      The big guys set retail prices at whatever they think the market will bear.

      That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --

      by enhydra lutris on Thu Apr 12, 2012 at 05:06:57 PM PDT

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      •  ah, I did more than glance (0+ / 0-)

        where do the national oil companies stand as far as setting price in your view? saudi, russia, etc.?

        and what is wrong with setting price as "what the market will bear"?

        An ambulance can only go so fast - Neil Young

        by mightymouse on Thu Apr 12, 2012 at 05:52:25 PM PDT

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        •  The Russians and Saudis can't set the retail (0+ / 0-)

          price of gasoline here, they have no leverage. So long as the supermajors and majors can get their oil for a fraction of quotation price as they do currently, nobody really has much control.

          If somebody is absolutely reliant upon sweet light crude, then the Saudi's and Nigerians have some leverage there, except that Nigeria's oil is already being lifted on very advantageoous terms by some of the supermajors.  As more and more refiners gear up for heavy, sour crude, the lowest common denominator - Kazakhstan, for esxample, gains more market share and the Saudi's further lose control.

          That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --

          by enhydra lutris on Thu Apr 12, 2012 at 08:43:49 PM PDT

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      •  not the most readable diary, though (0+ / 0-)

        I gave up part way through.

        An ambulance can only go so fast - Neil Young

        by mightymouse on Thu Apr 12, 2012 at 06:01:59 PM PDT

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