Thread: New Hire class
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Old 12-17-2017 | 08:34 AM
  #117  
El10
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Originally Posted by Wiggam
They would still pay the market/hedged price for crude, the only savings is in the refining process.
Which becomes more profitable at a high price. The spread always goes up with price increase especially so in a rapid increase. The refinery is a safer hedge against price volatility. Add in the effect that that refinery also can disrupt our own fuel price. They could manipulate fuel price by decreasing production. In my opinion the only way we can hedge against their hedge is by maintaining a more fuel efficient fleet compared to them.
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