Originally Posted by
KC10 FATboy
I agree with you. However, what concerns WS about the refinery is that ConocoPhillips, whose expertise is refining oil, couldn't produce a profit. And now DAL, whose core business is not refining oil, is telling the market they can buy, contract it out, and turn a profit/lower the price of jet fuel.
Does DAL management know something that the oil refining experts don't?
That is the $250 million question.
I wonder how much cost goes into transportating each barrel of oil to the consumer, and how much of that cost is taken out of the profit.
If we trade our future position, swapping inventory supplies, then we reduce transportation expenses dramatically. If this is the theorized plan, we may be on to something.