Quote:
Originally Posted by creaturecat
Need an example? Premium fuel - still 5 bucks a U.S. gallon, here.
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And why...just why would I sell a product at $4 per unit when the market will bear $5?
There is zero question that every refiner/distributor will exploit the overhang as long as they can as they know that their upstreams are going to get whacked right on the gentlemen's bits and making hay while the sun shines sounds like just plain good business.
It will take someone to blink in the Mexican standoff that is downstream retailing before we see prices slide and with Imperial being the dominant player and price setter, that is not likely going to be proportionate to the reduction in crude prices.
Also keep in mind that there is a lot of product in the system, there is lag before the "cheap stuff" shows up, and that is only for those players who are actually buying spot as opposed to long term contracts or their own internal production.
Dennis