Energy & Climate
Refinery Data Suggests Real Crude Oil Costs May Be Double Reported Prices
Mario Nawfal Interviews
TRUMP'S STRATEGIC OIL RESERVE MIGHT COLLAPSE BY SEPTEMBER - w/ Economist Philip Pilkington
"If you look if you you can kind of estimate if you run a line up to the up to the line that I've put here and then down you can see that it's associated with as I said about a 110 $115 a barrel. Right? So that's that's what I'm arguing. Maybe the crack spread isn't showing us that the refineries are making this gigantic profit. Maybe it's showing us that their costs are higher than is currently being quoted on the Brent price."
Analysis of refinery crack spreads reveals a massive deviation from historical norms, suggesting refineries may be paying $110-115 per barrel for crude oil despite official Brent prices around $68. The analyst argues this discrepancy is too large and persistent to be explained by price gouging, particularly after Trump's warnings to refiners. The crack spread must normalize within two weeks to validate official pricing, otherwise it indicates systematic underreporting of actual crude costs.
From this episode
Mario Nawfal Interviews