It appears from oil prices today, that everyone figured out that the drop in gasoline inventories at US refineries is a normal strategic move when crude oil prices are expected to decrease. Refiners operate on a first in-first out accounting method. Thus, if they build gasoline inventories using less expensive crude oil, they effectively (theoretically) "trap" high priced gasoline (and diesel) in their tanks -- which becomes important when end-of the year accounting occurs. Thus, gasoline inventory management 101 lesson number one: when crude oil prices drop, move all of the high-priced product in refinery inventory to market as soon as possible, even if you have to temporarily reduce production rates - or lower import purchases. The temporary impact for the consumer will be extended high prices at the pump -- potentially followed by a decrease in prices as lower crude oil prices encourage competitive wholesale pricing. - George
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Gasoline Inventory Management this post is very helpfull
Posted by: cerca gratis | February 10, 2009 at 12:56 PM