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Arbitrage means that these barrels will flow into the US and offset some of the US production. Of course, Trump could slap some tariffs there, but high energy
by InTheArena 7y ago
Arbitrage means that these barrels will flow into the US and offset some of the US production.
Of course, Trump could slap some tariffs there, but high energy costs are never popular (no matter how good they may be).
- tenpies 7y agoKeep in mind oil is not oil. The US produces some fairly top quality crude by global standards. This is both good and bad. You don't want to be using WTI crude to produce bunker fuel - that's like using truffles to season canned beans - you could do it, but it doesn't make rational sense to do so. Better to export your WTI for uses that need such a quality crude (and pay accordingly), then import some low quality OPEC basket crude to produce bunker fuel.
- allovernow 7y agoAt this point $60/bbl is a low price. People buying still remember $120/bbl.