|SThe three variables shown on this slide
affect refiners’ financial performance, and thus affect investment plans. While high crude oil prices affect
feedstock costs, the high margins and light-heavy price differentials are
primary incentives for adding refinery capacity.
|SThe balloon helps to remind us that, while
such prices and margins are currently up, the path will eventually return to
earth. But will it be after a trip
round the world or simply after a two hour tour?