SNIP
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>Nobody complained when OPEC influenced price rise by $20 and gas price going by couple cents.
>I feel that some information is required here. US domestic gasoline market stopped to be independent long time ago, about 70s when construction of new refineries was effectively banned. Since then, USA imports increasing amount of gasoline from foreign countries, so currency fluctuations (e.g. between USD and Euro) affect gas price on daily basis.
>The major thing that is 'not clear' to me is the following. There are too many people with rather preliminary knowledge of oil or any other commodity markets, but with extremely firm knowledge about collusion and gauging. Imho, it says more about personal attitudes or social views than about actual situation in particular industry.
I believe that you are incorrect, Ed, in attributing the curret price of gasoline "about the 70s when construction of new refineries was effectively banned.
It was after the 70s that big oil found the magic formula - buy other oil companies and shut down refineries on the basis of excess capacity. It is critical to note that they were fuly aware - in fact counted on - the fact that refinery construction was an unwelcomed activity in most communities.
With less refining capacity than requird to meet peak demand an artificial shortage is created and capitalism rushes in to save the day.
Enron did exactly similarly when they manufactured the California electricity crisis. Except they were too sloppy and too greedy and ultimately got caught. In the case of Enron there was collusion suspected too but it was very difficult to prove at the time.
Business has no morals. Management's only obligaion is the growth of shareholder value. With these operating guidelines it is very clear to most of us that the default position should be to suspect foul play!
Indirectly related - why was ***any*** company importing "wheat gluten" from China?????? Since when did China have excess wheat to sell, and since when could China produce wheat for less that most any other modern western country?????
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