....gas prices in New York (where the NYMEX future is benchmarked) currently trade $15.48/bbl over where they trade in Rotterdam (Europe’s busiest port) net of quoted shipping costs. In Galveston, Texas (currently under partial operations) gasoline is $9.62/bbl over Rotterdam prices net of quoted shipping costs. In other words, if traders can buy Rotterdam spot gasoline, book passage on a refined product tanker, and sell it forward in New York, they could be looking at $9mm gross margins, including the $3.52 in shipping price. For this reason, we expect PADD 1 product imports to surge, and local gasoline price spikes in the US to be temporary amidst a loose global products market.Translation: Global traders/capitalists -- seeking profits -- are coming to the rescue of U.S. consumers hit by Harvey!
Friday, September 1, 2017
Man! Capitalism and the Freedom to Trade Across Borders are Beautiful Things!
From Bespoke Investment Group's morning message: emphasis mine...