I have never figured out the inherent contradiction regarding oil

[kjoe]

1. Oil companies want more oil available to sell, so they can increase their profits.

2. Oil companies want less oil available to sell, to drive up the price of oil and increase their profits.

1 - 10 of 1,650,000 for oil company conspiracies

1 - 10 of 3,760,000 for greedy oil companies

1 - 10 of 125,000,000 for oil company prices

1 - 10 of 39,900,000 for oil company profits

25 words or less?

[Jack Daniels]

A painful death for all oil co. CEO's

[marco]

fungible

[Airshark]

1. Oil companies want more oil available to sell, so they can increase their profits.

2. Oil companies want less oil available to sell, to drive up the price of oil and increase their profits.

1 - 10 of 1,650,000 for oil company conspiracies

1 - 10 of 3,760,000 for greedy oil companies

1 - 10 of 125,000,000 for oil company prices

1 - 10 of 39,900,000 for oil company profits

25 words or less?

You've really got to define "oil companies".

Distributors and retailers want more oil to sell. Drillers and producers want less oil sold by everybody else, because that raises the price they get per barrel. Refiners, meh, as long as they're at capacity, they're happy. Mostly they just don't want to have to build new refineries.

These roles (there are others) are rarely all done by the same company. Even when they are, the commodities markets may mean that they temporarily prefer one or the other.

[Bleacher Creature]

My main issue has to do with the lack of competition in pricing. All stations go up at one time abd to the same price. Every local station was at $3.19 this morning. Where's the local competition?

[Schwahalala]

1. Oil companies want more oil available to sell, so they can increase their profits.

2. Oil companies want less oil available to sell, to drive up the price of oil and increase their profits.

1 - 10 of 1,650,000 for oil company conspiracies

1 - 10 of 3,760,000 for greedy oil companies

1 - 10 of 125,000,000 for oil company prices

1 - 10 of 39,900,000 for oil company profits

25 words or less?

There is no contradiction - its simple supply and demand economics.

The median point of supply and demand is equal to the amount the most customer's will pay for you product without looking at other alternatives.

So if I have 100 gallons of oil per day - and I can sell all 100 gallons for 2.00 per day or less but only 75 gallons at 3.00 per day - what should be my price?

3.00 per day - because at 3.00 per day I make 225 vs 200 at 2.00 per day.

Like wise if I could get 5.00 per gallon and sell only 50 gallons a day. I would still make more money 250 per day and that would be my selling price.

Never - ever confuse - your supply with your end product of business. If you don't have left over supply - your price is too low and needs to be raised.

[Schwahalala]

I will continue - with the local donut shop.

Each day they sell donuts at 50 cents and sell out.

They raise their prices by 10 percent and they sell out.

They raise their prices another nickel and they have 5% left over that they through out everyday.

They have increased profits 20% but are now losing 5% - for a net gain of 15%.

[Airshark]

My main issue has to do with the lack of competition in pricing. All stations go up at one time abd to the same price. Every local station was at $3.19 this morning. Where's the local competition?

You might not believe this, but for most gas stations, the gas is a necessary evil to get people into the mini-mart. They make much higher margins there. Gas is not very lucrative for the individual retailers, and varying too much from the tankwagon price is a losing proposition with their distributors. "Price wars" don't make sense any more.

[Bleacher Creature]

You might not believe this, but for most gas stations, the gas is a necessary evil to get people into the mini-mart. They make much higher margins there. Gas is not very lucrative for the individual retailers, and varying too much from the tankwagon price is a losing proposition with their distributors. "Price wars" don't make sense any more.

The part about their profit coming from their mini-marts doesn't surprise me. However, I'd think having your mini-mart's gas marquee showing a nickle less than the other guy across the road would get more folks to buy their gum, chips, and other snack items from your mart.

[Airshark]

The part about their profit coming from their mini-marts doesn't surprise me. However, I'd think having your mini-mart's gas marquee showing a nickle less than the other guy across the road would get more folks to buy their gum, chips, and other snack items from your mart.

And get you a nice kick in the ass from your distributor.

[Bleacher Creature]

And get you a nice kick in the ass from your distributor.

If the same local distributor is supplying BP, Shell, Siclair, QT, and various other stations, then where's the spirit of free commerce? IMO, that's a monopoly.

[Iowa_Card]

The part about their profit coming from their mini-marts doesn't surprise me. However, I'd think having your mini-mart's gas marquee showing a nickle less than the other guy across the road would get more folks to buy their gum, chips, and other snack items from your mart.

Aren't there laws preventing the sale of gas at a certain discount than your competitors? I thought, by law, that gas prices couldn't be more than a few cents different than the average gas price within that area?

[Airshark]

If the same local distributor is supplying BP, Shell, Siclair, QT, and various other stations, then where's the spirit of free commerce? IMO, that's a monopoly.

Only if there is no other way to get your gas.

Heh. "Spirit of free commerce". Heh.

[Airshark]

Aren't there laws preventing the sale of gas at a certain discount than your competitors? I thought, by law, that gas prices couldn't be more than a few cents different than the average gas price within that area?

No. There are distributor brakes that can be applied if you vary too much from the tankwagon price. Further, if you're affiliated with a major station chain, you have to conform to their policies as well. I don't know of anywhere that you can't cut your price to whatever you want. And I do know of a gas station in LA that prides itself on having the MOST EXPENSIVE gas in the state. People line up to pay as much as a buck over the going rate.

[Bleacher Creature]

Only if there is no other way to get your gas.

Heh. "Spirit of free commerce". Heh.

I fail to see the humor. This idea of having the prices of various stations set to the same price does concern me.