Article: Refined Oil Products Prices Break Many Rules

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 ...

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