#3.99 at the pump

[BigWill]

you didn't answer the question. Regardless of how big they are, can they, or can they not, price the product as they see fit?

 

[Uninformed]

WillThe Link

 

[Oilfield]

They can and they do adjust their prices, of course. Otherwise every gas station in the country would have the same prices, which they don't. Meanwhile the Oil Companies make a profit as their shareholders expect them to do, but it is relatively modest compared to other industries.

 

[Hookem123]

(chant) OBOMBA OBOMBA OBOMBA (end chant)

 

[mcbrett]

In reply to:

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[JohnnyYuma]

Interesting that oil fell 15% last week but gasoline didn't drop. I'll bet if oil had moved the other way, the station owners would have raised the price immediately. On another note, did you notice that silver cratered when they raised the margin requirements. Would that not put a little pressure on the oil speculators if the margin reqirements were raised on oil futures??

 

[mcbrett]

There was an interesting article in the Times about how the increased margin requirements on silver initiated the silver selloff- and then similarly other commodities were sold off at the same time as investors suddenly acted as if the run up on commodities had run its course. Thus- the margin call likely was the catalyst for last week’s sell off.
I believe about $10-$15 of oil is middle east premium- but even after that- this is a very high price considering much of the world’s demand is weakened- which only strengthens the supply/demand argument.

 

[general35]

this is a very high price considering much of the world’s demand is weakened
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world demand isnt weakened. the new chinese middle class want cars and the chinese demand for oil is going up and will continue to go up. as big as exxon is, they still have to buy 1/2 of the oil they refine. this fact alone makes the argument about the oil companies setting prices beyond stupid. 90% of exxons profits last quarter were generated outside the united states. a majority of their profits here are generated off of their chemical divisions and refineries which generate profits of about 10 cents off of every gallon of gasoline produced. i think exxon makes about 2 cents a gallon from the gas stations, individual owners of those station make the rest and the government makes more than all of them combined, by about 300%.

 

[BrothaHorn]

I'm surprised, they have not tried to raise the margin requirements on Oil and gold.

I read somewhere, that the reason gas prices don't drop as fast, is because the stations bought at the high prices and can't recoup costs if they suddenly lower the price.