“Refined-product prices were way underpriced relative to the cost of crude oil. The refiners were losing money,” said Bryant Gimlin, energy risk manager for Gray Oil, a fuel wholesale marketer based in Fort Lupton.
BS!
Yep, BS.
Ed Wallace has been consistently right on oil market prices and supply over the last 5 years. He’s written numerous article for Business Week, but last weekend he had a column in the Fort Worth Star-Telegram that explains the relation of gasoline prices to crude oil prices:
http://www.star-telegram.com/ed_wallace/story/1203800.html
By the way, the company I work for runs over 200 gas stations around the country, and Ed is the one I listen to for perspective.
Maybe I ought to post the article in new thread, since I didn’t turn it up using the search feature.
>“Refined-product prices were way underpriced relative to the cost of crude oil. The refiners were
>losing money,” said Bryant Gimlin, energy risk manager for Gray Oil, a fuel wholesale marketer
>based in Fort Lupton.
>
>BS!
Agreed. There’s something not right here.
Look at the spot market price last Oct, Nov and Dec. Crude oil was selling for more than gasoline.
Cushing, OK WTI Monthly Spot Price
http://tonto.eia.doe.gov/dnav/pet/hist/rwtcm.htm
U.S. Gulf Coast Conventional Gasoline Regular Monthly Spot Price
http://tonto.eia.doe.gov/dnav/pet/hist/rruusgm.htm
(Note: 42 gallons in a barrel)