WYOMING HEAVY ASPHALT SOUR CRUDE BTFO, ETERNALLY. These land-locked fuckers are fucked for good. All of their crude is worthless, because to pipe that crude in — it costs at least $7 per barrel. If we’re talking about trucking it, forget about it. This is why WYOMING SOUR trades at a NEGATIVE value.
So who wins?
Overseas in the Brent market — foreign producers are storing crude in tankers.
I am long FRO. Other plays include EURN, STNG, and NAT.
Here in the states, crude is sent to refiners. Those refiners are now GODS and can pretty much set prices. If they don’t like it, fuck off and die. Refining margins had collapsed until recently and have since SOARED from $2 crack to $9. I suspect these margins might hold for some time, as domestic producers get BTFO until their crude is selling for $00.00.
My refiner positions are DK and HFC.
Other plays include VLO, PBF and MPC.If you enjoy the content at iBankCoin, please follow us on Twitter