Quote:
Originally Posted by Hydrae
It would if the arguement for it going up as soon as the crude price goes up wasn't so that they can afford the next load. So the price goes up immediately to cover the next shipment but the price stays up to pay for what they have in the tank already.  |
That's precisely what happens. If they see crude going up, they know that they have to raise prices immediately, because their next shipment is going to cost more.
It's the replacement cost.
And, the price isn't staying up. It has dropped.