Re: Texas oil is up again


"John Galt" <whoisjohngalt@xxxxxxxxxxxxxx> wrote in message news:13npn9d585qtq33@xxxxxxxxxxxxxxxxxxxxx

"Gary" <none@xxxxxxx> wrote in message news:nnlpn3po6tn16c2rm2dc3ivo6j48gn35rh@xxxxxxxxxx
Have you noticed that when oil hit $100 a barrel yesterday, that
British North Sea crude never got over $98 a barrel. I wonder why it
is that our friends and allies in England always charge us less for
oil that do the Saudis and the Texas oil shieks ?

Not to screw up a good conspiracy theory, but the regional variations per barrel have to do with the quality of the crude -- the lower the quality, the more expensive the refining process, and that cost is reflected in what a refiner will pay for the crude.

JG

John, here is something that I wonder about. We know that the $100/b price we see is the spot price on the world market. It is set by bidders bidding up that price.

1. Who controls the bidders?
2. Do the majors such as Exxon Mobil pay the world market price or do they have contracts with the Saudis and others that are much lower than market?

I live near the refiners here in Texas and have many friends that work for the petrochemical industry and we hear things from them. Several of my friends have lived and worked in Saudia Arabia running their oil operations. They tell me that Exxon does not pay that price for their oil. They have long term contracts at much lower prices but charge for the gasoline as if they paid the higher spot market price. Hence, their record profits.

Just a tidbit of info in case you didn't know this;

During the Desert Storm I war in which the US and others kicked Saddam Hussein's army out of Kuwait, part of the deal with Kuwait and Saudi was not only military bases there but also they contracted to provide the US with oil at $10/ b for a period of 10 years.

JP





Why is it that every time we bomb the Arabs, the price of West texas
crude oil goes up ? By the reaction in oil prices -- you'd think
it was little Texans being blown up. I never could understand that
relationship.

With friends like the Saudis, the Israelis and the Texas shieks --
the working people in America can't afford any enemies. It's hard
enough to enrich our "allies".



.

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