by babystrangeloop » Sat 03 Mar 2012, 14:30:19
$this->bbcode_second_pass_quote('pstarr', '')$this->bbcode_second_pass_quote('babystrangeloop', '')$this->bbcode_second_pass_quote('vaseline2008', 'C')urrently the US is a net exporter of gasoline but prices continue to increase. Doesn't this alone point out the error of reason to "get off foreign oil"?
US can get rich selling gasoline to the EU while WTI is $20/barrel cheaper than Brent.
1. Lock down WTI to US PADD II
2. Due to having only limited buyers, supply and demand causes WTI price to be lower than world crude price.
3. Make gasoline with, say $107/barrel oil and sell it to Europe at a premium (as if it was made from, say $127/barrel oil)
4. Profit!
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WTI arbitrage is a PADD II windfallIzabella Kaminska / FT Alphaville (blog) / January 28, 2011
... The implications are that US PADD 2 refiners are enjoying a de facto subsidy that has boosted their profitability far above competitors elsewhere. ...