Quote:
Originally Posted by Donger
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.
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Yes, I see. If next week's gas is going to cost more than this week's gas I need to pay more for my gas this week so the station can pay for next week's shipment.......even though I don't want next week's gas and in fact just want to buy this week's gas. But if the price of crude drops then the price of next week's gas might go down, even though it's the same gas.
Do I have it right?