Quote:
Originally Posted by fishbones
I thought most of those "lock in" deals only lock in on the maximum price. When I locked in the first year I had oil, I only paid the max price if oil was at that price or higher. When it went lower, I paid the lower price.
Side note, there's 2 million barrells of oil on a tanker being held by pirates right now in Somalia. They're negotiating to release it when the Saudi government meets their asking price. I wonder if that amount of oil affects the pricing?
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I think that type of contract is normally only offered first year - after that you may what you locked in at. I locked into a deal where I pay $.50/gallon over what the wholesale price.
2m barrels isn't a whole lot.