RE: Local sales selling prices up10 Apr 2024 18:16
Again, another pretty outrageous comment said with outmost confidence.
First, we know that traders take a substantial of volume from DNO/GKP/SNM and truck it abroad: their ability to price (bid) depends on their ability to sell it abroad.
Secondly, the refiners compete with other local sources of crude; and do you really argue that if that was priced at $120, they would still not pay a single cent more to GKP/DNO/SNM as if local prices was at $40?
To say it doesn't correlate 1:1 is fine, or to say it comes with a lag is fine - but to argue there's no correlation at all to international brent is ludicrous.