Chris -
Can you explain why ALL American companies buying crude oil and paying for it, then refining it can still have the huge profits they have and still blame it on the price per barrel. Stations here raise their prices sometimes two and three times a day, [i.e. 2:15 PM yesterday $3.71 per gallon at one station, went by again at 2:45 PM, prices $3.78 - third trip about 6 PM, $3.81 per gallon that was one station - all others in area averaged $3.79 by the evening] and they sure don't have that many deliveries. And why do all the stations in the area stay within 2-3 cents of each other constantly, they all don't get deliveries at the same time. How about posting the profits of the companies, along with the costs of crude oil, also throw in the salaries of the top execs. Yep it's all just from the cost of crude. :bs:
Understand where all the splits are - just seems very strange that once or twice a week deliveries get raised two or three times per day.
http://www.engdahl.oilgeopolitics.net/Financial_Tsunami/Oil_Speculation/oil_speculation.HTM
In the most recent sustained run-up in energy prices, large financial institutions, hedge funds, pension funds, and other investors have been pouring billions of dollars into the energy commodities markets to try to take advantage of price changes or hedge against them. Most of this additional investment has not come from producers or consumers of these commodities, but from speculators seeking to take advantage of these price changes. The CFTC defines a speculator as a person who “does not produce or use the commodity, but risks his or her own capital trading futures in that commodity in hopes of making a profit on price changes.”
The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.
Exxon's CEO earned $21.7 million in compensation last year. That's $59,452.00 per day.
Exxon produces 2,747,000 barrels of oil per day.
If you paid the guy nothing at all the price of a barrel of oil from Exxon would drop by 2 cents.
I ran across this article yesterday and posted it in another thread.Quotehttp://www.engdahl.oilgeopolitics.net/Financial_Tsunami/Oil_Speculation/oil_speculation.HTM
In the most recent sustained run-up in energy prices, large financial institutions, hedge funds, pension funds, and other investors have been pouring billions of dollars into the energy commodities markets to try to take advantage of price changes or hedge against them. Most of this additional investment has not come from producers or consumers of these commodities, but from speculators seeking to take advantage of these price changes. The CFTC defines a speculator as a person who “does not produce or use the commodity, but risks his or her own capital trading futures in that commodity in hopes of making a profit on price changes.â€
The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.
This all may just be another stock market bubble driving up prices. I didn't see anybody complaining when 1500 sqare foot houses in Santa Barbara were selling for half a million dollars, but now that the artificially inflated real estate prices have caused the market to collapse on itself (sort of), people are upset. Same thing happened in '99... Mark Cuban sold Broadcast.com for $6 million to Yahoo and now the guy owns a baseball team. If it weren't for the tech bubble, the guy might still be a bartender and we wouldn't have that shitty Brian DePalma movie.
Chris -
Can you explain why ALL American companies buying crude oil and paying for it, then refining it can still have the huge profits they have and still blame it on the price per barrel. Stations here raise their prices sometimes two and three times a day, [i.e. 2:15 PM yesterday $3.71 per gallon at one station, went by again at 2:45 PM, prices $3.78 - third trip about 6 PM, $3.81 per gallon that was one station - all others in area averaged $3.79 by the evening] and they sure don't have that many deliveries. And why do all the stations in the area stay within 2-3 cents of each other constantly, they all don't get deliveries at the same time. How about posting the profits of the companies, along with the costs of crude oil, also throw in the salaries of the top execs. Yep it's all just from the cost of crude. :bs:
The average profit margin is about 8.5%, Rusty. That's dismal when compare to other industries. Instead of looking at the actual dollar amount, you have to look at the margin. Everything is relevant. Those billions they're making aren't going into the pockets of the CEO's, they're going to stockholders, retirement accounts, research and development, and other acquisitions.
Chris -
Can you explain why ALL American companies buying crude oil and paying for it, then refining it can still have the huge profits they have and still blame it on the price per barrel. Stations here raise their prices sometimes two and three times a day, [i.e. 2:15 PM yesterday $3.71 per gallon at one station, went by again at 2:45 PM, prices $3.78 - third trip about 6 PM, $3.81 per gallon that was one station - all others in area averaged $3.79 by the evening] and they sure don't have that many deliveries. And why do all the stations in the area stay within 2-3 cents of each other constantly, they all don't get deliveries at the same time. How about posting the profits of the companies, along with the costs of crude oil, also throw in the salaries of the top execs. Yep it's all just from the cost of crude. :bs:
The average profit margin is about 8.5%, Rusty. That's dismal when compare to other industries. Instead of looking at the actual dollar amount, you have to look at the margin. Everything is relevant. Those billions they're making aren't going into the pockets of the CEO's, they're going to stockholders, retirement accounts, research and development, and other acquisitions.
100% correct. The idiots in Congress know this too.... But they keep pointing the finger at Big Oil and making them testify cuz they know it plays well with the uninformed and the sheep.
Chris -
Can you explain why ALL American companies buying crude oil and paying for it, then refining it can still have the huge profits they have and still blame it on the price per barrel. Stations here raise their prices sometimes two and three times a day, [i.e. 2:15 PM yesterday $3.71 per gallon at one station, went by again at 2:45 PM, prices $3.78 - third trip about 6 PM, $3.81 per gallon that was one station - all others in area averaged $3.79 by the evening] and they sure don't have that many deliveries. And why do all the stations in the area stay within 2-3 cents of each other constantly, they all don't get deliveries at the same time. How about posting the profits of the companies, along with the costs of crude oil, also throw in the salaries of the top execs. Yep it's all just from the cost of crude. :bs:
Understand where all the splits are - just seems very strange that once or twice a week deliveries get raised two or three times per day.
(http://i65.photobucket.com/albums/h228/burnsk73/oilnozone.jpg?t=1214944633)
One nearby gas station, Dave's, raised prices from $3.799 to $3.899 in a matter of a day and a half, even WHEN the price of oil has dropped some $6 from it's highest point. The fact of the matter is that this station is near the local lake and two major highways. No more than two miles away, gas prices were STILL at $3.779 at those stations and haven't risen in four days. (Those are also on a major highway and an alternate lake access route) Needless to say, I refuse to business with Dave's Gas station. While many gas stations only make MAYBE 10 cents per gallon profit (probably less in many cases), it's apparent that a few are engaging in outright price gouging.