>>>>>>>I'm assuming this was meant for me.
>>>>>>>
>>>>>>>The rise and fall of gasoline prices is due to competition. The oil that is currently being traded on the market will not become gasoline for 3+ months. When crude prices rise gas stations raise their prices in order to maintain their miniscule profit margin on future purchases. Gasoline formulas are strictly regulated so all gas stations are purchasing the essentially the same refined product so the prices stay within pennies of each other. When crude oil drops in price it's competition amongst various stations which drives the price down. Counterintuitively it's during the downturn when retailers make larger profit for a short period of time.
>>>>>>>
>>>>>>>There have been multiple studies and Congressional hearings regarding price gouging which have resulted in nothing.
>>>>>>>
>>>>>>>If you want to see actual gouging look no further than milk in New York. The price is fixed by regulation, yet 86% of stores have been caught overcharging. That's gouging. Never mind the cost to produce milk has gone up and the price controls squeeze if not eliminate the profit.
>>>>>>
>>>>>>Oil is a fungible commodity - an amusing illustration at http://www.freerepublic.com/focus/f-news/1584659/posts
>>>>>>
>>>>>>It helps to think of "capitalist markets" like democracy - the absolute worst system possible, except for all the others ...
>>>>>
>>>>>He uses that wonderful phrase again. Changes in the amount supplied or the amount demanded cause the price to go up or down. As if it is governed by some irrefutable law of physics based on Planck's constant and not human beings looking for opportunities for profit. By that logic, there is no such thing as gouging. After all, if supply is low and demand is high, it's out of the hands of the seller. Remember that next time there is a blackout and 'C' batteries are selling for $50.00 a pop.
>>>>
>>>>Free markets would do fine with supply/demand; in other words, these two will gravitate to each other as if based on physical constants. The problem is that free market is never free, i.e. it always get distorted by humans, usually, for the sake of common good. Ironically, those who promote distortions are usually the same who complain about market shortcomings. Talk about inherent hypocrisy.
>>>
>>>I'm glad you said 'usually' for the sake of the common good. I don't see that with the oil industry. It seems there to be usually for the sake of their collective pocket.
>>
>>Once again, please justify this presumption of greed and conspiracy in light on an 8.3% profit margin.
>>
>>In 2006 when Exxon Mobile returned 18% it was 10th on the list for returns. I'm not sure where it ranked in 2007 but I'll wager its a lot lower, yet I don't hear the calls for windfall taxes and nationalization of technology and cola.
>
>From http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aFyT0fu5KFeM last year when Crude prices were less than $100/bbl..
>
>"Exxon Mobil's price-to-book ratio, or share price divided by book value, is 71 percent above the average for its U.S.- based peer group, according to data compiled by Bloomberg. Exxon Mobil has a 28 percent return on capital employed, highest among the world's 10 largest oil companies by sales. "
>
>"Crude prices are expected to remain above $85 a barrel through 2016, New York futures contracts indicate. That's about $35 above the minimum price that major oil companies need to continue expanding drilling programs, according to Lehman Brothers Holdings Inc. analyst James Crandell. "
>
>Poor babies. They are doing us a favor holding prices down like they are.
>
>8.3% - BS.

*sigh* I forgot what discussing this is like.

To be consistent I expect all of you who bitch about the oil companies and their profits to similarly attack Pepsi, Wal-Mart, GlaxoSmithKline, Microsoft, ADM and gold companies for the various reasons that's you've presented in this thread.

There I can act irrationally also.

That's it. I'm out.