gas/diesel prices not talked about.

[wulimaster]

quote:

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Originally posted by farfel:
I was talking about the price the oil company pays the Arabs. If the oil company says to the Arabs, "I refuse to pay $55 a barrel," the Arabs won't care. They'll just sell to China or Europe or Japan.

The oil company has to pay whatever the Arabs demand.

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It is the buyers bidding the price up. Not the oil owners raising prices. This is how it works when you have more buyers than product. The buyers try to outbid each other for a scarce resource.

 

[mikemc]

My thoughts are this: with so many folks flocking to large gas guzzling SUV's and pickups these days, gas prices must be about right. If everyone was buying small cars and trucks and leaving the gas hogs on the dealers' lots, that would signal prices are too high. As far as diesel, I guess you would have to ask a fleet truck owner, which I am not.