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To: hubbubhubbub
Econ 101 my friend. given constant demand for finished product a refinery shut down lowers supply thus prices rise.

That would affect the price of gasoline, or the output of the refinery. Not the feedstock crude that goes INTO the refinery - if refineries are buying less oil because of a couple of shutdowns, demand goes down and prices of crude should FALL.

22 posted on 08/01/2005 11:27:15 AM PDT by dirtboy (Drool overflowed my buffer...)
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To: dirtboy

Based upon the rise in price of crude, it looks like your assumption is invalid. The refineries are not buying less but are ensuring supply in the belief that future prices will continue rising.


30 posted on 08/01/2005 11:37:37 AM PDT by hubbubhubbub
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