Originally posted by Zoom Zoom Diva: Actually, that is the illogical part. The shortage is in the refining stage. This means there is a relative surplus of crude oil. The refinery should be seeking to purchase crude at lowest cost.
Since there is more crude oil than we can refine into gasoline, that should actually cause the value of crude oil to decrease, not increase.
The key here is that the ENTIRE oil and gas market seems to hinge on futures trading, which can radically warp the value of the various petroleum products.
Perception becomes reality; there's no better example than the rumors of extreme shortages in Atlanta. It created a run on gas overnight and inflated the price of gas to astronomical proportions despite the reality that the shortage is nowhere that significant...
JaTo
e-Tough Guy
Missouri City, TX
99 Contour SVT
#143/2760
00 Corvette Coupe
