User 235997

Crude Oil at $122 Is Good News for Refiners

You realize margins have actually shrank since we have taken 20 percent off the price of crude? The fallacy the author and many others have fallen into is thinking that lower oil = better margins. That is not necessarily true at all. Take a look at margins when oil was trading around $10 a barrel and you will see what I mean. Margins are bad because there is a lack of oil and a glut of refined products....no other reason than that.