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To: Jomini

Anyone but me wonder about this one. Refineries turn crude into gas(and other things). Refinery shuts down, crude goes up. Shouldn't it be gas goes up (less being produced) and crude goes down (less being refined)?


8 posted on 08/08/2005 9:12:30 PM PDT by CA_soon_gone
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To: CA_soon_gone

That's because the price has nothing to do with supply and demand right now - it's 100% emotion. The frothers have been in command. But they are gonna fall HARD!


11 posted on 08/08/2005 10:02:30 PM PDT by GOP_1900AD (Stomping on "PC," destroying the"and Left, and smoking out faux "conservatives" - Take Back The GOP!)
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To: CA_soon_gone

"Refineries turn crude into gas(and other things). Refinery shuts down, crude goes up. Shouldn't it be gas goes up (less being produced) and crude goes down (less being refined)?"

You're right, it's just a game they're playing in order to justify getting into the government sponsored incentive program. One problem is that there are no independent speculators. All of them are connected to brokers who in turn are connected to the oil giants getting the government sponsored corporate welfare. Right now most gas contains about 1% water but refiners could put another 1% in and call it conservation then receive the incentive. It's no win for anyone except for the oil/gas giants that already made record profits.


16 posted on 08/09/2005 7:20:21 AM PDT by tobyhill (The War on Terrorism is not for the weak.)
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To: CA_soon_gone
"Shouldn't it be gas goes up (less being produced) and crude goes down (less being refined)?"

If things were logical yes. When markets run on fear logic can go out the window for awhile.
Long term, basic supply demand should take over. High prices should definitely be bringing more supply and reducing demand.
21 posted on 08/10/2005 4:24:25 PM PDT by HereInTheHeartland (The Democrat party is the official party of the Morlocks.)
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