Why Is Oil Below $100 and Who Stands to Gain?

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Oct. 21 (Bloomberg) -- On today's "Insight & Action," Adam Johnson looks at who benefits from the drop in oil prices. He speaks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Oil breaks below $100 for the first time.

The question is why into wins?

Very simple what is going on.

We conduct the meeting last week over nuclear issues such an attempt.

Those are positive.

They will keep putting more money into the markets that is all very good for refiners, falling oil prices.

Here is why, they go out and have to pick.

They have to run it through the markets under intense heat and pressure.

They create the products they turn around and sell.

If crude prices are going down, that means margins can widen out and we can track refineries.

What you do is try to affiliate -- simulate what the context look like by saying three barrels of crude produces to barrels of gasoline and one and heating oil.

Just recently they have started to turn up.

That is the key.

As a matter of fact, down here in the single digits they are losing money.

Looking at the refiners, this is your opportunity, your action.

Trading very cheap given the fact that the markets have been under such pressure.

The example, historically trades at 8.5. these are some of the other examples, refiners that are trading to cheap.

As oil goes down, it should widen out the marketing -- oil this -- should even back out.

This text has been automatically generated. It may not be 100% accurate.


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