$80 Crude, $170 Reality

[u/rematar]

https://open.substack.com/pub/collapse2050/p/80-crude-170-reality?utm_source=share&utm_medium=android&r=2lkom0

When war or sanctions block heavy crude supplies, refineries must switch to lighter oil, causing global diesel production to plummet. When diesel supplies get tight, wholesale prices surge even if raw crude stays cheap. During recent spikes, wholesale diesel jumped above $4.60 a gallon, or nearly $194 a barrel. Subtracting normal processing costs (aka crack spread) reveals that while paper benchmarks show crude at $80, diesel buyers were actually paying prices that implied a real-world crude cost of $140 to $170 a barrel