Re: oil refining conspiracy?

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

You are correct, but in Kaliforneeya refinery capacity is short & the
out of state delivery channels relatively narrow.  Spiking gasoline
prices here would have more shock value than crude oil.  Only our
culture and politics are crude.  Our petroleum is refined.


On Tue, Aug 09, 2005 at 10:24:37PM +0100, Daniel Davies wrote:
> outages at refineries would not necessarily have all that much effect on the
> price of *crude* oil.  I can construct an argument as to how it would
> increase the backwardation in futures, but I don't think you could
> systematically manipulate the spot price of crude this way.
>
> dd

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu