Challenge for Independent Refiners
Independent refiners are subject to the vagaries of crude oil prices and are experiencing, to put it mildly, challenging times. Independent refiners are particularly vulnerable to crude prices simply because they purchase crude oil at market prices to refine. Unlike integrated majors, independent refiners are not refining their own equity crude oil. Independent refiners are purchasing crude oil, often times 30 days or more in advance of when the crude oil will be delivered, refined, and later sold. Therein lays the challenge for many independent refiners.
If a barrel of crude is bought at $80 per barrel and 20 to 30 days later it is refined and ready to be sold, crude oil prices have now moved. The challenge ...
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