Re: Web Site Error Rocks Global Oil Markets

Jun 01, 2007 0 Replies


>> 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.
> John Mayson
> Austin, Texas, USA


[TELECOM Digest Editor's Note: Not really, since there is a more than


> ample supply of wheat with which to make more bread, but oil is a
> somewhat more limited substance. And, refineries do more with crude
> oil than simply make gasoline. How about all sorts of 'petroleum-based'
> by-products? PAT]

I think that is a good question. Perhaps the competition says, "hey, buy us more oil so we can make a run at the marketplace while that refinery is down." Thus bidding up the price of crude.

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