Re: Web Site Error Rocks Global Oil Markets

>> World oil prices jumped briefly on Wednesday after a television station

>> in Tulsa, Oklahoma -- the No. 62 U.S. media market -- posted an >> erroneous story about a refinery fire on its Web site. > Someone explain something to me. > Why would the price of a raw material go up due to a refinery fire? > It'd be like the price of wheat rising on news of a fire at a Wonder > Bread factory. I could see the price of gasoline rising, but not oil.

Because the amount of oil being 'sold' on the market is _many_times_ higher than the actual volumes delivered.

Many operations buy and sell oil 'futures' to protect themselves against changes in the price of various kinds of refined products -- especially when they do not have the ability to buy/sell futures on the particular product they require.

Reply to
Robert Bonomi
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