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Isolated but looking east: a structural overview of product prices in the US Midcontinent

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The US Midcontinent refined products market, with Chicago as its center, is quite volatile in terms of the price setting mechanism. Depending on seasonal demand trends, price indexes for various products could be tagged to Minnesota, Houston, New York, Detroit, or other regional demand centers. Is Chicago-priced gasoline truly tied to USGC prices? What is the clearing mechanism of jetfuel into the robust Chicago O'Hare market? How will refinery margins fare in the face of wide WCS discounts and the coming IMO regulation?

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    Isolated but looking east -- a structural overview of refined product pricing in the US Midcontinent.pdf

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