Home › Forums › Coking › News: DCU, Upgrader › 1.Coker (registered users only) › Update – Motiva PArthur Coking Refinery looks beyond 600MBD › RE: Saudi's be lone crude provider for Motiva Expanded PArthur
The fact that the Saudi’s want to be sole supplier to Motiva’s expanded 600MBD refinery in US, lends creditability to fact that it is speculators driving price oil not supply. If price was driven by demand then the Saudi’s wouldn’t want this obligation & would prefer to place some of this type volume into the markets where need is higher.
See post under Coking.com’s “Refinery” section for article “Washington is to Blame for High Prices” article, which talks to this point. The Saudi’s are fairly tapped out for producing higher volumes & recently when they did produce the higher volumes the tenders were not taken. Placing more crude into captive integrated refining asset is what producers do when the supply is long due to reduced demands – and over long term is best strategy for producer…….something majors like BP, Shell & COP may have to re-learn given thier present course of shedding downstream assets.