Sabtu, 10 Oktober 2015



Who benefits from lower oil prices?
By STEVE AUSTIN for OIL-PRICE.NET

Lower fuel prices are great for the consumer, but we know that not all of the cost saving of lower crude oil and gas prices have been passed on to the general public. Oil and gas refiners prosper from lower oil prices. Like the rest of the oil industry, refiners' revenues are down, but their profit margins are up significantly. 

Refiners are using lower crude prices to widen their cut of the pump price of oil. In other words, the lower price of oil is not entirely passed down to consumers at the pump, instead the difference is enabling refiners to increase their profits.


Price Falls

Crude oil prices have been plummeting since June 2014. The initial fall was rapid and unexpected. This was because production grew faster than projections and demand deteriorated faster than expected, resulting in an excess of oil for sale in the world. Periodic rumor-fuelled rallies in the market since June 2014 have proved to be the result of wishful thinking. Recent events, such as the fall in Chinese growth projections and the end of sanctions against Iran, have given economists reason to downgrade their expectations for crude oil prices.

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