The oil we sell this month is for a price fixed in March, based on the March spot price, when it was first sold (there are multiple transactions after the first sale but the producer gets the first price when the cargo is originally loaded). The cargo then needs to get to a refinery which takes X weeks depending on the destination. So there’s a considerable lag between the the spot price and when the refined product gets to market.
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The oil price was $139 a barrel in March and it is now $104 yet the fuel prices are higher now than they were in March any economists out there to explain this?!
And why isn’t this being discussed in the media!
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