Price of oil is higher every time I buy it

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Originally Posted By: 91344George
Considering the sway these huge influential companies have today...sorry but I think anyone can be bought off, we know the SEC is a paper tiger already. I think the IRS goes after more middle class taxpayers than any other income bracket.

Corruption is rampant.

I'm not saying fraud is a certainly BUT it is a possibility.

Dear I say, I'd agree. Something about gas and oil that is simply not right...
 
Originally Posted By: tig1
Originally Posted By: grampi
Originally Posted By: tig1
Originally Posted By: MNgopher
Define reasonable profit. You may be surprised at the actual profit margin for large oil companies. The overall profit is more diven by their sheer size than anything else.


I believe it is in the 8-12% range for XM.


That's what they report as their profit, if you believe that...


What is your reason not to? Do you think all corporations just pay whatever taxes they want, year after year? Tell us you don't believe that.


The numbers just don't add up. Look at the billions the oil companies rake in every quarter and I'm supposed to believe them when they report an 8 or 9% net profit? Quit being so naive...
 
Originally Posted By: fdcg27
Fortunately, in the case of a publicly held company like XOM, their books are audited by an outside firm for compliance with GAAP as well as the company's internal controls.
Additionally, you have an army of regulators from the permanent, civil service government who are in no way beholden to any elected official.
These folks, who range from those at the IRS to those at the SEC, play no favorites with publicly held entities.
So, I'd say that XOM's gross revenue and net earnings data are probably pretty accurate.

Really? Does the word "Enron" ring a bell?
 
Originally Posted By: fdcg27
George, nobody is reaching that far down the food chain in buying people off.
Politicians are easily bought off with campaign cash.
Mid level civil service functionaries?
I don't think so.
Their pensions are too valuable to them.


Oh come on, the oil industry has been around for 100 years now and they didn't become the most powerful entity in the world without learning how to sidestep a few hurdles...anyone who believes they're totally on the up and up is just plain naive...
 
Originally Posted By: HTSS_TR
The world, Europe + America + ..., will never let any country, Iran or anyone else, "shut down the Strait of Hormuz".


While it may never happen, prices are rising in anticipation of the possibility of the shut down. The Navy already has ships in place in the event of a problem. I'll refrain from further comments, at least for now.
 
Originally Posted By: MNgopher
Last profit margin I found quickly for XOM was 9.75%. That means for every dollar of revenue, the "profit" is just shy of 10 cents. Is that unreasonable?

Interestingly the portion paid in taxes and fees to the governments of the world is about 27-28%. Is that reasonable?

There is a lot more to motor oil pricing than just crude oil pricing. Have there been reformulations of motor oil required? Changes to base stocks to meet more stringent requirements? Changes to additive packages that may or may not be less expensive to implement? Any research or expenses required to produce and implement these changes? Any increases in costs of transporting the finished product? Any increases in costs of other things, like the petroleum based packaging?

Its easy to make balankets statements that the price of motor oil is going up regardless of the price of crude. Crude oil is but one component.


That's the profit margin for XOM as a whole. What is their profit margin on motor oil alone? How about a company like Amsoil or Red Line, I bet they make a lot more than 9.75% on a qt of oil. I'm pretty sure the Mobil 1 brand makes a lot more than 9.75% for XOM too.
 
Originally Posted By: demarpaint


That's the profit margin for XOM as a whole. What is their profit margin on motor oil alone? How about a company like Amsoil or Red Line, I bet they make a lot more than 9.75% on a qt of oil. I'm pretty sure the Mobil 1 brand makes a lot more than 9.75% for XOM too.


You might be surprised. If Amsoil was clearing .50-.80 on each quart they would be pretty happy. Frankly, I'm not even sure how Redline could make any money when people say they are 100% ester, and in fact, we know they aren't when you look at the cost of ester base oils. My point is the smaller guys are getting squeezed very hard by base oil and additive prices.
 
Originally Posted By: demarpaint
That's the profit margin for XOM as a whole. What is their profit margin on motor oil alone? How about a company like Amsoil or Red Line, I bet they make a lot more than 9.75% on a qt of oil. I'm pretty sure the Mobil 1 brand makes a lot more than 9.75% for XOM too.

I would estimate it costs the oil company $1 to $1.50 to put a qt of conventional motor oil on the shelf...
 
Originally Posted By: Pablo
You might be surprised. If Amsoil was clearing .50-.80 on each quart they would be pretty happy.


Absolutely. On the retail side of things, my parts supplier makes no more than that per quart, either.
 
You guys complaining about cost need to stop and remember that a large percentage of that cost is due to government regulation and taxes. I think the gas refiners are up to 14-15 different blends they have to produce to meet various regional regs. It doesn't help that we haven't built a new refinery in the US since 1978 due to the regulatory environment.

It's easy to see what's going on with gas prices. Just turn on CNBC and watch the top ticker for RBOB gas futures. Retail will usually follow this price +/- 70-75 cents. It rarely gets outside this spread without wild fluctuations in crude.
 
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Originally Posted By: grampi
I would estimate it costs the oil company $1 to $1.50 to put a qt of conventional motor oil on the shelf...

I think that might even be a stretch. Bottom line is we will NEVER get an honest answer.
 
Originally Posted By: demarpaint
Originally Posted By: HTSS_TR
The world, Europe + America + ..., will never let any country, Iran or anyone else, "shut down the Strait of Hormuz".


While it may never happen, prices are rising in anticipation of the possibility of the shut down. The Navy already has ships in place in the event of a problem. I'll refrain from further comments, at least for now.


More gouging by oil companies via speculators injecting fears into the market. I wish I had a job that guaranteed my income would go up whenever I can't do my job....
 
Originally Posted By: Garak
Originally Posted By: Pablo
You might be surprised. If Amsoil was clearing .50-.80 on each quart they would be pretty happy.


Absolutely. On the retail side of things, my parts supplier makes no more than that per quart, either.


That doesn't mean the oil companies aren't making a big chunk...it's just like gas stations. They don't make much profit from selling gas, the oil companies make it all...
 
Last edited:
Originally Posted By: grampi
Originally Posted By: demarpaint
Originally Posted By: HTSS_TR
The world, Europe + America + ..., will never let any country, Iran or anyone else, "shut down the Strait of Hormuz".


While it may never happen, prices are rising in anticipation of the possibility of the shut down. The Navy already has ships in place in the event of a problem. I'll refrain from further comments, at least for now.


More gouging by oil companies via speculators injecting fears into the market. I wish I had a job that guaranteed my income would go up whenever I can't do my job....


Casting fear, doubt, and uncertainty, then cashing in is pretty easy. I wish I knew the right people to get me a job doing that, I think I'd do well, very well.

Funny thing is many times after a "crisis", or even an "anticipated crisis" oil companies report record profits. Funny isn't it?
 
Originally Posted By: demarpaint
Casting fear, doubt, and uncertainty, then cashing in is pretty easy. I wish I knew the right people to get me a job doing that, I think I'd do well, very well.

Funny thing is many times after a "crisis", or even an "anticipated crisis" oil companies report record profits. Funny isn't it?

I bet it make would us sick to find out how many trillions of dollars the oil companies have made through prices being jacked up based on fears that something might happen, but never actually does....
 
Oil companies can only charge what we're willing to pay.
When gas prices increase, sales decline, followed by prices.
I have no doubt that the same is true for motor oil.
Pricing is based upon worldwide demand, pure and simple.
Price manipulation is simply not supportable for any length of time.
Basic finance and economics.
 
Let's see if prices skyrocket because of the Iran issues how XOM profits do that qtr. Sorry to say in a perfect world supply and demand dictate prices, when a commodity as essential as oil is involved there's a bit more to it than just supply and demand. Fear, greed, and manipulation come into play as well.
 
Price of oil is higher every time I buy it


So is healthcare....{removed political statement}
 
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The big money in oil is to the producers , Refining margins are tight and are why there isn't much interest in building new ones .
 
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