[Marxism] how are (oil) prices set?
dave.walters at comcast.net
Tue Jul 8 13:00:57 MDT 2008
I might also point out that Venezuela does not get the $144/bbl it's
going for today (on the spot market) in any event. Their quite sour (hi
sulfur content) extra-heavy crude goes for a lot less. Still they are
doing well, obviously, to the tune of about $400 million per day. Most
prices are for the sweeter, lighter stuff (which Venezuela also has).
I don't know if people are aware to this, but a lot of oil (more before
the futures market started cutting into the spot market) that is on the
spot market isn't even sold until it's actually in an oil tanker
steaming across the ocean. This is especially true of distillates like
diesel fuel. (the tankers have a broker on board the ship and waits for
his office to come up with a winning bid, then the ship actually goes to
that port where the bidder has bought the oil. Strange, but true).
It is a very, very complex system with no central market and,
increasingly, no central currency for purchases.
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