Reply #46: The refinery shortage lie [View All]

[norml]

It is a lie, that there is a refinery shortage, and that it is responsible for the high price of gasoline. The price of gasoline is high, because the price per barrel of oil is high. If the Saudis, or anyone, were to dump more oil on the world market, the price per barrel would go down. The price per barrel of oil is set at the same price everywhere. It is determined by world supply, and world demand . It has nothing to do with refineries, except that a real shortage of refining capacity would lower the price per barrel of oil, by lowering overall demand.

http://www.eia.doe.gov/oil_gas/petroleum/info_glance/refineryops.html