Wednesday, January 25, 2006

Yes, it is a commodity......

The price will fluctuate and not necessarily with supply and demand at the margin like stocks trade. I am speaking of one barrel of crude oil. The average oil well in America maybe pumps a dozen barrels a day, if that.

In one barrel of crude oil equates to 42 gallons of crude oil. After refining, those 42 gallons of crude are produced into 19-20 gallons of gasoline. The rest is sold for other products.

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