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Bob F

zzzzzzzzzz wrote:
On Mon, 02 Jan 2012 17:18:45 -0800, "Malcom \"Mal\" Reynolds"
wrote:

In article ,
"HeyBub" wrote:

Bob F wrote:
HeyBub wrote:
And exporting the refined product is a plus. Look how well-off
Saudi Arabia is.

So much for the fantasy of lower prices in the US.

Oil, and oil products, are fungible.

Producing more lowers the price world-wide and that simultaneously
lowers the price here. That's true for gasoline or any product made
from oil.

if only this were true. what determines the price, or more properly
influences the price the most is the commodity traders. we know that
in the US refinery capacity is fixed (except for the occassional
maintenance and/or explosions), we know that the demand id mostly
fixed and that the only thing that changes constantly is the price
the commodity traders bid it up.

But that doesn't affect the world price? OK....

Really?