People don't realize just how much money was spent to make Ultra low sulfur diesel. It was huge. Trying to just ram AH into the refining system is just not doable in the modern world where you can't just burn any old shit.
So: still too expensive. In the long run, we're all dead. John Maynard Keynes
Would you install a wind turbine if there was a user who could only profitably buy the power at 2 cts/kwhr? If not, why would you expect the Saudis to price AH at WTI - $30 just so fuel oil could replace nat gas in thermal power plants at the margin and thereby trash the price of the rest of the bbls?
Why would you expect the Saudis to price AH at WTI-$30 just so fuel oil could replace nat gas in thermal power plants at the margin and thereby trash the price of the rest of the bbls?
No idea how those are pricing, but the domestic bbls will be owned by the oil cos who will always use their own bbls first. Gotta put them somewhere. Mexico probably has their Maya sales termed up (sales for a year committed both ways with prices floating off the market). Saudi has customers with contracts but they are more flexible about nominations with reasonable limits. I'm no expert here and it's been a long time since I sat next to the crude traders. Things may be different now.
