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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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To: hubbubhubbub
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.

Either that, or the stated reason has no relevance to the price increase.

If refineries are buying more oil to meet future demand, then the article should state that. But saying that outages at refineries would increase the price of crude oil is absurd on its face. In addition, the refineries have limited storage capacity, so any refinery experiencing an outage can't just stock up on oil while it is down - sooner or later, the tanks are full.

Increase the price of gas, yes. Increase the price of oil, no.

31 posted on 08/01/2005 11:40:53 AM PDT by dirtboy (Drool overflowed my buffer...)
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