China North East Petroleum Holdings, Ltd.(fka CNEP)

[viking86]

The oil surcharge fee varies b/w 20% at $40-45 and 40% at >$60/bl in increments of 5% per $5/bl bracket. So whether oil is at $77/bl as in Q2'10 or $80/bl, the "tariff" doesnt change, the surcharge is still at 40%. Basically for the $3 difference in oil price, they pay $3 x 40% = $1.20 more per bl. compared to Q2'10. So they make $1.80 more per bl.

So I'd say: the higher the oil price, the more money we make. Remember 2008? Avg oil price for NEP was $90.68/bl, that was a very good year.