matt (hbergeronx) wrote,
matt
hbergeronx

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on failures of capitalism

What I don't understand:

Why are crude oil prices climbing on a refinery fire? In the theory in my head, the refinery takes crude oil as it's input, producing gasoline and other refined products as it's output. If it is hobbled from purchasing crude oil, there should be an increased market supply, since output it usually consumes is now available. Therefore, crude oil prices should fall, because of decreased demand, while gasoline prices rise, because of decreased supply.

Can you explain it?
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