Just an observation culled from the news this evening .

of corporations than I do. I'd suggest it's more like what the market will bear and whatever you can get away with than actual supply and demand.

While Adam Smith's original works were brilliant examples of the philosophical inquiry of the Enlightenment, they didn't address all the manipulation and chicanery that has characterized the capitalist system since the bad old days of the Robber Barons and monopolies and trusts.

But that is of course JMO,

Rob

..... is set by the world market. Traded on the stock exchanges,

The only price setting for crude comes from OPEC and other producing countries.

The oil companies do not set the price for crude.


Angeline
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Angeline, is that they very quickly pass increases in crude on to the pump (even for product refined and shipped well before the increase in question); but when the price of crude comes down, the price drop is passed along the supply chain much more slowly. It's a "heads I win, tails you lose" system for the the integrated oil companies, and a lose-lose for consumers.

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Tell me Dave, if the price of tomatoes today is $3/lb and you plant some tomatoe plants, what do you sell the tomatoes for in 3 months?

Or how about this: You have 5 gallons of gas in a can in your garage. You bought that gas for $2/gallon. Your neighbor needs gas for their tractor and doesn't have time to go to the station so you sell him yours. What do you charge him for the gas? (Presume no "neighbor discount"). Same gas, only now you bought it at $5/gallon just after Katrina hit. What do you charge him?

achieve independence from OPEC.

I was listening to the radio yesterday and they were talking about some holes in OK and TX that were closed because they weren't profitable. They are now open and pumping oil like crazy since the price went up and people are working now and getting benefits.

Diana

Sands become profitable whenever the price of crude goes above $30 a barrel. Apparently they're working 3 shifts a day now, and there are more barrels of untapped crude in the Tar sands than in all of Saudi Arabia. And if the United States can learn to get along with Chavez, apparently there's more reasonably easily available oil there than current statistics indicate. Didn't I hear that he was willing to sell the US oil at $60 dollars a barrel earlier this week? Sounds like a fair deal, 20% below current market price, so long as there's an escape clause if oil drops below say $58 a barrel.

Rob

of drilling and pumping our own oil rather than importing it.

THE MONEY STAYS HERE providing for American families & building the American economy.

Same thing is true for other major purchasesthere are hidden benefits to buying domestic products.

that go into refining and supplying gasoline. Not to mention all the other things oil is used for and that the rise in crude prices affect as well. There is no reason to expect the price of crude and the price of gas to rise and fall in lockstep.

What amazes me is that people are so quick to accuse the oil companies of "gouging" absent any real evidence yet are willing to ignore the real gouging going on by the government in the form of taxes.