Relationship Of Crude Oil Marketers And Refiners
With growth in economy of many nations, the middle class consumers’ appetite is increasing for spending money. This is also largely due to the fact that easy loans are available that make buying bigger and better products feasible. One such consumer good is the car. |
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The car requires crude oil to run on; the crude oil that is becoming expensive with each passing day. And we don’t have only government to blame for our woes. Crude oil marketers and refiners play a very important role as well in deciding how much money we shell out at the gas stations.
Any person marketing oil is in effect trading in oil business. Almost all major oil companies have their own marketing subsidiaries. The main purpose of these subsidiaries is to provide the refineries with constant supply of crude oil so that the oil demand of these refining plants is met.
The marketers purchase oil from the refiners in advance. This is done to meet any unexpected or unforeseen demand in any region of the world. While a refiner may sell the finished lighter fuel at a nominal rate, the marketer can quote a very high price to the buyer. This is an intelligent market strategy. Hence an oil cargo can exchange hands many times before being finally sold at a gas station near you.
Sometimes the marketer can also undertake negotiations for the refiner. If the refiner has no need for the refined oil, the marketer can hold sales of the crude oil owned by the refinery. Marketers of oil will be found buying and selling finished oil on Stock Market Exchange.
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Crude oil is a result of decay and decomposition of dead plants and animals. These were buried in the deep layers of the earth in the absence of oxygen. This composition that is in crude form is extracted. The extracted material is sent to refineries to distill primary and secondary products. 
