On Fri, 16 Apr 2004 13:43:40 GMT, Gus <GusPod@optOFFline.XXXX.net> wrote:

>Jen wrote:
>> On Thu, 15 Apr 2004 18:49:16 GMT, Gus <GusPod@optOFFline.XXXX.net>
>> wrote:
>>
>> Worldwide prices have gone up, so that one IS true. As far as screwing
>> the customer is concerned, you know that every merchant will try to
>> get the best buck for their products. Furthermore, if the merchant
>> doesn't apply his mind to that goal all the time, he will most likely
>> go out of business pretty soon. But competition is so fierce in the
>> oil business, that margins are kept very low despite the desire to
>> maximize profits.
>>
>> Don't believe it? Buy some oil company stock then. As a part-owner,
>> you will learn how big their profits are each year, and you will
>> participate in this profit making.
>
>I'd rather see a link or two to support your claim that "competition is
>so fierce in the oil business, that margins are kept very low despite
>the desire to maximize profits".

There's no need for "links" - just look around and use Google if need be.
Check the price of crude oil then price of gasoline and other downstream
petroleum products. Where else can you find a complex, finished product
with such a low ratio of consumer price to raw material cost. Check the
number of independent refiners left - they just could not survive in the
market, particularly under the burden of govt. mandated recipes for their
products. The capital required just wasn't there.

Also check out the futures market on gasoline and other petroleum products
-- a lot of your money ends up in the pockets of speculators -- to get an
idea where we are and where we're heading. We've just had a relatively
hard Winter in the N.E. USA so, following the usual patterns, there should
be a minor excess of gasoline "stock" right now. As that stock runs down
under the usual Summer consumption pattern, the prices will only go up. If
any of the Arab producers take it into their head to retaliate, even in a
minor way, for Dubya suddenly donating the West Bank to Israel... remember
1973??

Rgds, George Macdonald

"Just because they're paranoid doesn't mean you're not psychotic" - Who, me??