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Article: Refined Oil Products Prices Break Many Rules
- Article from:
- APS Review Downstream Trends
- Article date:
- December 17, 1990
CopyrightCOPYRIGHT 1990 Input Solutions. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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There are no absolute rules which define how the prices of refined oil products should relate to the price of crude oil. Nor are there absolute rules as to how the prices of oil products relate to each other. Free markets exist for bulk trading refined oil products at several locations worldwide. Interfuel competition and oil refining economics are important elements in setting the prices over the long term. In the short term, oil products stocks actually in and around the bulk market locations are important in setting prices. Active trading in the markets and arbitrage between markets usually keep oil products prices in equilibrium worldwide.
The loss of crude oil ...