Traders Cooperative

[Joe Stocks]

>>Talk on CNBC about TSO and VLO refusing to pay higher prices for crude-
The word is that the refiners are squeezed from profit margins by the high crude oil prices causing very tight crack spreads. TSO hinted that they will not pay the higher crude prices and I guess so are expecting VLO to behave the same way. If the refiner's bluff fails and those refiners shut down when their crude tanks are empty, you can count on gasoline lines at the service stations that have gasoline. And you all know what happens when the law of supply and demand takes over to ration what gasoline is available by much higher prices. You can expect Congress and the governors to demand that those refiners produce gasoline even if they have to produce it at a loss.
Suggestion: Get all your gasoline tanks filled today! <<

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