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How do you take delivery of such huge volumes? Rail?
by treyd 1y ago
How do you take delivery of such huge volumes? Rail?
- cman1444 1y agoSurely by pipeline or ship I think. When he says "physical barrels of oil" I believe he means he's actually buying the oil itself (as opposed to buying a contract or derivative of some sort). I don't think he means that the crude oil is actually arriving in individual barrels. But I could be wrong.
- hodder 1y agoCorrect.
- hodder 1y agoPipeline and ship. We've done some rail in the past, but it is a last resort when basis spreads are wide. The oil is pumped off of ships or straight off the pipeline into our refinery tankage.