[ExI] This is a Historic Day For World’s Oil Markets

[spike at rainier66.com]

> On Behalf Of Adrian Tymes via extropy-chat



On Mon, Apr 20, 2020 at 2:16 PM William Flynn Wallace via extropy-chat <extropy-chat at lists.extropy.org <mailto:extropy-chat at lists.extropy.org> > wrote:

 

>>…Wow.  You mean I can go fill up and they pay me?  bill w

 

>…If the negative prices had lasted long enough for effects to come down the supply chain all the way to your local gas station, that might indeed have happened eventually.

 

>…They didn't, and it was expected they wouldn't… Adrian

 

The kind of oil whose price went negative is the sour crude (high sulfur) which is more expensive to refine to the standards we demand, not the sweet crude we get from Saudi Arabia.

 

If your car burned sour crude oil you would be in good shape.  

 

It doesn’t, so you still need to pay people to refine the crude into gasoline, transport it to the gas station, pay the gas station to maintain the equipment to pump it out of the underground tank into your car and measure the amount you used in order to bill you.  You also still need to pay the taxes on the fuel.  Add all that together and it still goes over 3 bucks a gallon, which is what I paid this morning.

 

spike

 

 

 

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