Refiners are getting squeezed by high crude oil prices and faltering U.S. demand, so let’s increase their costs!

Michael Giberson The Houston Chronicle reports on the difficult financial position of many U.S. refineries. Crude oil prices are up for refineries relying on international markets, but U.S. consumers are moderating their gasoline consumption at higher prices and so refiners find their margins to be getting squeezed. A good article, but right at the end… More Refiners are getting squeezed by high crude oil prices and faltering U.S. demand, so let’s increase their costs!

Hamilton on the main reason oil prices are high

Michael Giberson Saudi oil minister Ali al-Naimi said¬† there was “no rational reason” for current high oil prices, since there were enough supplies and all consumers were getting oil. James Hamilton rises to object, “if oil prices were lower, the world would want to consume more than is currently being produced.”¬†Hamilton examines what the quantity… More Hamilton on the main reason oil prices are high