So much oil, not enough pipeline, so much oil that it is selling at a discount - yet gas and diesel prices keep climbing.
Makes ya wonder...
Precisely because this oil is not coming to market via pipeline.
It is selling at a discount at the point of production because it costs so much to move it to the refinery. The cost to the refiner is still the same but the producer has to pay the extra transportation cost.
The refiner doesn’t pay a producer more because he spent more, he pays the going market rate at his location.
Consequently, the cost to make the gasoline is unchanged. Having a large expensive middle man will not lower prices in oil or any other market.