Paid Over $4 For Gas Today

[Bonestorm]

No, this is incorrect. Oil prices are set on a global level. The only differences in the end gasoline price are due to:

1) taxes on gas
2) distance it has to be transported

The oil companies all essentially sell oil based on the futures market. They set contracts and then deliver on those contracts.

Also, you and Nigel are both wrong. They neither want oil cheap, nor do they want it too expensive.

Too cheap and they do not recover production costs.

Too expensive and they risk demand destruction and increased economic viability of alternatives.

Oil companies want to stay around fair value and keep it as stable as possible. Currently fair value is in the $75-80brl range. It is currently being driven up due to instability in Mid East.

You left out refinery capacity.

And, while I agree that oil companies don't want too high prices for too long, they are perfectly content with short-term supply shocks every now and again driving the price up. And because demand for oil is fairly inelastic until you get around $4.00 average for gasoline (like we had Summer '08, and i'm talking national average, not CA) because there are few alternatives.

 

[Topspin]

We actually have a glut of oil in the US now. China and India are becoming more important to the market than we are. China buy's more cars than we do, and India is just discovery the joy's of mopads and tata's.

 

[signalmankenneth]

Chimes of Freedom in Middle East

 

[Lowaicue]

I'm sorry if you think I am nuts thinking that the prices of fuel are extremely high. They are. A lot of folks can't afford to fill up thier tanks now. And I do agree, I think the prices will go higher.....and things will get tougher on working families and poor folks. The difference is that I think it is a sad thing and you think it is a good thing. Different strokes I guess....

I know yanks are obsessed with guns and other killing devices, but tanks? Tanks for yanks!
Ditch the car and buy a bike with the money you save.

 

[Lowaicue]

We actually have a glut of oil in the US now. China and India are becoming more important to the market than we are. China buy's more cars than we do, and India is just discovery the joy's of mopads and tata's.

iPad goes mobile?

 

[Cancel 2018. 3]

You left out refinery capacity.

And, while I agree that oil companies don't want too high prices for too long, they are perfectly content with short-term supply shocks every now and again driving the price up. And because demand for oil is fairly inelastic until you get around $4.00 average for gasoline (like we had Summer '08, and i'm talking national average, not CA) because there are few alternatives.

i agree with this. the US oil companies made out like bandits in 08'....

 

[tinfoil]

You guys dont belive that the Oil COmpanies want to charge as much as possable for the product they sell?

learn to spell simple words, you dumbass.

And yes, they want to keep the price of their product as affordable as possible or they stand to lose overall volume. You are a simpleton. Read some economics books

 

[Onceler]

learn to spell simple words, you dumbass.

And yes, they want to keep the price of their product as affordable as possible or they stand to lose overall volume. You are a simpleton. Read some economics books

The master of all topics.

Look up limited competition, as long as you're preaching the gospel on oil prices...

 

[tinfoil]

The master of all topics.

Look up limited competition, as long as you're preaching the gospel on oil prices...

LOL. Do show us the numbers on how limited the competition is. You must really suck at economics or you believe whatever pointy-headed econo-tards you listen to. hahah your example makes me laugh. If there were perhaps only 3 or 4 oil companies, your assertion could make sense. Tell us the magic number number of oil companies we need to be safe from the scourge of limited competition!!