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To: ASOC

It is selling at a discount at the point of production because it costs so much to move it to the refinery. The cost to the refiner is still the same but the producer has to pay the extra transportation cost.

The refiner doesn’t pay a producer more because he spent more, he pays the going market rate at his location.

Consequently, the cost to make the gasoline is unchanged. Having a large expensive middle man will not lower prices in oil or any other market.


14 posted on 03/15/2013 2:30:04 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

THanks!


15 posted on 03/17/2013 1:41:25 PM PDT by ASOC (What are you doing now that Mexico has become OUR Chechnya?)
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