Quote
Originally posted by: DonDiego
i. If this strike were to result in a 10% decrease in production of, say, gasoline without a comparable decrease in the demand for gasoline the price of gasoline in the United States might rise.
ii. If the strikers' demands were met, the costs of refining might readjusted upward to cover the new higher-wage costs.
n.b. DonDiego does not share the opinion that gasoline prices are likely to rise, under the present conditions.
i. It is likely the remaining 90% of refining capacity could pick up the slack.
ii. Given the current lower price of oil, and hence lower profitability of oil companies, the strikers demands are unlikely to be met.
Originally posted by: DonDiego
QuoteThe strikers are currently striking at refinery facilities that represent 10% of the US refinery capacity.
Originally posted by: alanleroyQuote
Originally posted by: hoops2
Possible oil refinery strike is driving the price back up again
I don't get this. The outcome of a refinery strike would be to use less oil...so why would it drive up crude oil prices rather than drive them down?
i. If this strike were to result in a 10% decrease in production of, say, gasoline without a comparable decrease in the demand for gasoline the price of gasoline in the United States might rise.
ii. If the strikers' demands were met, the costs of refining might readjusted upward to cover the new higher-wage costs.
n.b. DonDiego does not share the opinion that gasoline prices are likely to rise, under the present conditions.
i. It is likely the remaining 90% of refining capacity could pick up the slack.
ii. Given the current lower price of oil, and hence lower profitability of oil companies, the strikers demands are unlikely to be met.
I don't think DonDiego answered my question....Why would a refinery strike drive up crude oil prices?
