On Thu, 24 Apr 2008 16:51:03 -0700 (PDT), nucleus
<rose122550@[EMAIL PROTECTED]
> wrote:
>the recent anomaly in the east caused the price of gas in the U.S. to
>go up about 25 cents per gallon.
>
>when the price excalates like this, because the price/bbl of oil goes
>up, who gets the extra money on a barrel of oil? speculators? oil
>companies? OPEC? WHO?
It's a complex question. It's not like Exxon buys a barrel of oil,
refines it, and then delivers it the next day with a close link
between cost to buy and price sold. Oil can take months to go from
crude to gas station. Also, the prices you see mentioned per barrel
are not actually the prices people are paying, but the price they are
entitled to buy a barrel for - if they buy it ( a "future option").
Often they just sell the option or even a purchase to someone else for
more or less money later. Most oil prices are not driven by people who
actually purchase oil for delivery.
Eventually the higher prices translate to more money in the pocket of
those supplying the crude. The people along the way in the food chain
don't _usually_ make a lot of extra money as prices rise. However,
when the gas station owner raises prices by 25 cents on gas he already
paid for at the lower price within the last few days, he rakes in the
money. Eventually his wholesale cost catches up with him and his
profit margin is reduced. He may lose later on if prices drop (not
happening much lately).
But, if you want to feel ripped off, take a look at the domestic oil
production situation. Exxon (to pick an oil company) pumps gas (oil)
from domestic wells in the South of the USA. It costs a certain amount
to get that oil refined into gas and to the gas pump where we buy it.
Exxon was making money off the wells they own when gas was $1/gallon.
Now they have the same costs, and gas is $3.50 per gallon.
These sorts of situations are one reason the five major oil companies
made $126b in profits last year. Remember to sup****t GWB and his
efforts to make sure the special tax breaks these folks get are not
repealed - that wouldn't be fair! Oh, and while you're getting pissed
off at GWB, don't forget to notice that the cra****ng value of the
dollar has global investors fleeing dollars and investing in oil -
driving oil prices higher and higher even as the dollar is worth less
and less. See GWB for that problem too (it has to do with a $3T
deficit and endless spending with no way of paying for it except
borrowing from other countries (further devaluing the dollar).
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