bds231

Indicator Points to Higher Gas Prices - and 3 Potential Power Plays

As an American driver, I care about Asian gas prices only in as much as they help determine the global supply and demand equilibrium. If Asian prices go up, be it through deregulation or any other means, the amount of gas consumed in Asia will go down (all other things being equal), and therefore the amount of gas consumed globally will go down. Which means, if the Asian and US markets are linked, the price of gas in the US should go down, putting MORE pressure on crack spreads.

Since the 3 stocks mentioned are US/North American companies, wouldn't this scenario put more pressure on them, not less? It seems to me that in order for these companies to succeed, either the price of oil must break or US/North American governments must cut gas taxes so that more of the cost of gas goes into the refiners' coffers than the governments'. This is the opposite of cutting subsidies, as the author proposes.

Am I missing something?