Quote:
Originally Posted by Frequitude
Huh? How would a refinery monetize the WTI-Brent differential? They don't produce crude, they consume it. The pipeline exploits that arb, not the refinery. As soon as that barrel hits tidewater it's priced on a Brent basis. That would increase the refinery's crude costs by $20 relative to Albeta refineries.
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Im saying if that refinery REPLACES the ability to export the crude, the refinery gets to monitize the spread. Buy cheap Ab crude, sell products into markets that are forced to buy Brent/Dubai based crude.