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If Gustav hurts rigs, current oil in the barrel becomes more valuable because the supply for current delivery might be restricted.... It takes 3-6 months to process oil to gas, pump, deliver, refine, store, distribute to gas stations. Oil price jumps rapidly based on expectations of short term supply demand issues, Gustav could limit supply for uncertain period, remember Kat? Gas at the pump is based on the old price for Oil 3-6 months ago... 147.5bbl old high. Gas prices rise and fall smoothly based on the cost of the Oil refined...Oil changes prices every minute... could you imagine if gas was priced by the minute? It would drive us crazy.
Lesson over,
Bizcamp
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He didn't expect; he was not disappointed! |